Michigan House Republicans
Rep. Alexander blasts planned tax hike by Democrats
RELEASE|March 29, 2023

State Rep. Greg Alexander, of Carsonville, today criticized continued attempts by Democrats in Lansing to block the full implementation of a permanent income tax cut that will soon help Michigan workers and small business owners keep more of what they earn.

Attorney General Dana Nessel issued a formal opinion on Tuesday declaring that an automatic income tax cut triggered through a signed 2015 law would only be in effect for one year. The 2015 law stated the rollback was set to take effect if the state’s revenue surpassed a certain level – which happened this past year. The rollback will lower the tax rate from 4.25% to an estimated 4.05%.

“People across our region and the state are seeing high prices every time they go to the gas station, grocery store and elsewhere,” Alexander said. “This plan we fought for in the Legislature worked to secure year-over-year income tax relief for hard-working people, but Democrats are set on raising taxes after one year instead of respecting what this law originally intended for.

“We had a budget surplus of $9 billion earlier this year. It speaks volumes that Democrats are going to come back for more taxpayer money when people are struggling to make ends meet – instead of allowing them to keep more of what they earn.”

The move comes after Alexander and fellow Republicans successfully defeated an attempt by Gov. Gretchen Whitmer to move money around and block the tax cut from taking effect. The first-term legislator noted that the lack of a specified expiration date on the rollback law makes it clear that the rate reduction should be permanent. Alexander also pointed to an analysis from the nonpartisan House Fiscal Agency stating the income tax should be permanent, which directly contradicts Nessel’s opinion.

The attorney general issued the opinion in response from Rebekah Eubanks, state treasurer in the Whitmer administration.

The automatic income tax reduction was rolled into a legislative effort Alexander supported in the Michigan House that also significantly boosted the earned income tax credit for working families and increased tax savings for retired seniors.

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