Michigan House legislators today introduced a package of bills to provide substantial income tax relief for families and seniors.
The bills continue and increase personal exemptions for Michigan taxpayers and their dependents on their income taxes, while providing additional relief for senior citizens.
Rep. Sue Allor said she fully supports the legislation, noting that northern Michigan families deserve a tax cut.
“The recent federal tax reforms will help some, but there are seniors and families in northern Michigan living paycheck to paycheck, and they deserve a more significant tax break,” said Allor, of Wolverine. “Giving people the ability to keep more of their hard-earned money will boost local economies in Alpena, Presque Isle, Alcona, Iosco and Cheboygan counties, improving our quality of life.
“Projections are showing that we can afford to cut taxes without compromising vital services and programs,” Allor said. “Quite frankly, voting to let people keep more of their hard-earned tax dollars is an easy vote and the right thing to do.”
House Bills 5420-5422 will:
- Ensure Michigan taxpayers can continue claiming personal exemptions on income taxes after federal tax reforms signed into law last month, and increases the state personal exemption from the current $4,000 to $4,300 for the 2018 tax year, with gradual increases reaching $4,800 for 2020;
- Certify taxpayers in Michigan cities with an income tax will continue to be able to claim exemptions in relation to the Michigan income tax, rather than the federal code, and
- Help senior citizens in addition to the personal exemption increase by providing a $100 refundable income tax credit for a single filer age 62 or older – or $200 for joint filers.
“We should make every effort to ease the tax burden on our families and seniors so they can thrive and continue to make Michigan a better place to live and raise a family,” Allor said.
The bills were referred to the House Tax Policy Committee.