Tagged: state income tax

Governor Snyder to listen for finance issues in Presidential inauguration

"Governor Rick Snyder says he’ll be listening for plans to fix the nation’s finances in President Obama’s second inaugural address today. He says bickering in Washington about the fiscal cliff and the debt ceiling are delaying a more-robust economic recovery," Rick Pluta reports.

Changes in Michigan income taxes

"Michigan income tax returns for 20-12 will look a lot different than last year. That's because a slew of deductions and credits have disappeared. Many retirees will have to pay taxes on their pensions. The state's homestead property tax credit will go away for many people. And there won't be a credit for college and tuition fees anymore," Rina Miller reports.

A 26-year-old to replace Benton Harbor emergency manager

"The incoming emergency financial manager for the City of Benton Harbor doesn’t start until February First, but he’s already working hard to create new relationships and get a complete picture of the city’s finances.  Tony Saunders is 26. But he says people should consider his experience working in Detroit and Highland Park, not his age. Saunders replaces outgoing emergency manager Joe Harris," Lindsey Smith reports.

Governor Rick Snyder has signed a reduction in the state income tax.

Last year, Gov. Snyder and the Legislature delayed a reduction in the income tax rate to January 1 of 2013. This measure moves it up a little. Now, the rate will drop -- slightly -- to 4.25 percent on October first. There will also be an increase in the personal exemption.

Democrats say the tax relief offered is a pittance – about 50 cents a week – compared to the dozen tax breaks for working poor households, homeowners, and seniors on pensions that were eliminated last year as part of a Republican-led tax overhaul. That did not stop most from voting for the rollback.  

Republican leaders say the economy – and, therefore, revenue – has improved enough for the state to afford a tax cut. It also happens to coincide with an election year. The two Republican sponsors of the tax rollback come from competitive districts.

A proposal at the state Capitol would cut the Michigan income tax rate to 3.9 percent over the next five years. Right now the rate is 4.35 percent.

Republican state Senator Jack Brandenburg sponsored the measure. He said people in Michigan were promised the reduction during messy budget and tax deals made in 2007. Brandenburg said he told his Republican colleagues about his plan earlier this month.

“At our caucus retreat, we were all asked to list our priorities, and I made it clear that this is one of my priorities,” Brandenburg said.

He said an estimated $450 million budget surplus convinced him it’s a good time to propose the rollback.

“I wanted to wait to see what kind of surpluses we were having. One-tenth of a point represents  $175 million,” said Brandenburg

Republican Senate Majority Leader Randy Richardville cautiously supports the proposal, but he said he’s hesitant to spend money that could be added to the state’s rainy day savings fund.

Democrats say surplus should be used to restore cuts made to K-12 schools and higher education.

We in the media have been paying a lot of attention to Governor Snyder’s attempts to push his program through the legislature. Mostly, we‘ve been preoccupied with the mechanics.

Last week, we talked about his compromise on the pension tax. Soon, we‘ll be discussing what seems likely to be the governor’s  success at cutting spending for the schools. Occasionally, we remember to mention the reason for all this painful budget slashing.