Plan reduces income tax for all while providing additional relief to seniors

State Rep. Andrew Fink announced the House Tax Policy and House Appropriations committees today advanced plans to slash taxes across the board for all Michigan residents and provide financial stability to debt-ridden municipal governments.

“Everyone is experiencing financial strain in the wake of the pandemic and as inflation continues to skyrocket, that means we should be extending relief to everyone,” said Fink, of Adams Township. “From working families to retired seniors, this plan will help people hang on to more of their own money.”

Fink said the House tax plan is better than the governor’s because it cuts taxes for every taxpayer – not just a small percentage of people who have government pensions.

The committees met today during a joint hearing to consider the two bills.

House Bill 5838, approved by the House Tax Policy Committee, provides an estimated $1.7 billion in annual, ongoing tax relief. It starts with rolling back the income tax rate to 3.9 percent – down from the current 4.25 percent – for all individual payers of the Michigan income tax.

Seniors would receive additional relief. The income exempted from taxes for those 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers. An additional exemption would be applied specifically to retirement income – also at $20,000 for single filers and $40,000 for joint filers.

House Bill 5054, approved by the House Appropriations Committee, provides $1.5 billion in one-time funding to reduce debt and improve the finances of public employee retirement systems. Most of the funding would go to pension plans for local governments and road commissions, with an additional $350 million to improve financing in the Michigan State Police retirement system.

“The people of Branch and Hillsdale counties sent me to Lansing to provide relief in the face of their everyday challenges,” Fink said. “That’s why I support this plan, because it puts money back in the hands of the people who earned it at a time when they need it most.”

HBs 5838 and 5054 now move to the full House for further consideration.

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