Michigan House Republicans
Rep. Bierlein: Democrats set to take away tax relief from Michigan workers
RELEASE|March 29, 2023

State Rep. Matthew Bierlein, of Vassar, 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 today 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 tax 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 income tax rate from 4.25% to an estimated 4.05%.

“State government can afford this cut to their finances. It was sitting on a $9 billion surplus earlier this year,” Bierlein said. “Most people in Michigan aren’t sitting on $9 billion to help them pay bills or buy groceries. I have heard from many people across our region about the importance of tax relief for them and their families. This was a plan that would help people keep more of what they earn, paycheck after paycheck and year after year. I will continue to work to deliver people with needed relief through lower taxes.”

The move comes after Republicans in the Legislature successfully defeated an attempt by Gov. Gretchen Whitmer to move money around and block the tax cut from taking effect. Bierlein noted that the lack of a specified expiration date on the rollback law makes its permanent intention clear. He also pointed to an analysis from the nonpartisan House Fiscal Agency stating the income tax should be permanent, which directly contradicts Nessel’s opinion.

“No one outside of this administration is interpreting the law this way, which shows just how out-of-touch they are as people continue to struggle with inflation,” Bierlein said. “This takes away their tax cut and takes us backwards as we work to provide real relief.”

The automatic income tax reduction was rolled into a legislative effort Bierlein 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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