The state Legislature this week fulfilled one of Rep. Lee Chatfield’s top priorities, approving bills to lower income taxes for Michigan families.
The bills headed to the governor preserve and increase personal exemptions for Michigan taxpayers and their dependents on state income taxes, saving families hundreds of dollars overall.
“This session of the House of Representatives began in January 2017, and from the very first day I’ve been leading the fight to lower income taxes,” said Chatfield, of Levering. “I’m proud to say we have approved legislation that will allow Michigan seniors and families to keep more of their own hard-earned money. This is a victory for retirees and every hard-working person in the state – our teachers, first responders and everyone else who heads to work every day to build a better life for their loved ones. They’re all going to save money.”
The legislation approved this week ensures Michigan taxpayers can continue claiming personal exemptions on their income taxes, a necessary step after federal tax reforms signed into law in December. In addition, the bills increase the state personal exemption from the current $4,000 to $4,900 by the 2021 tax year.
That translates to significant savings. The technical fix related to the federal reforms saves $170 per person per year — or $680 for a family of four – on state income taxes. The plan to raise the personal exemption to $4,900 provides $102 in additional relief for a family of four.
While Chatfield wholly supported the bills approved this week, his preference continues to be a rollback of the Michigan income tax rate such as he proposed with the very first bill introduced in the state House in 2017.
“There’s more than one way to lower taxes, and I am pleased we have found a broad and bipartisan consensus this week that saves money for all Michigan residents,” Chatfield said.
The legislation: Senate Bills 748 and 750.