State Rep. Ken Borton, R-Gaylord, listens during a joint hearing by the House Appropriations and Tax Policy committees on Thursday, Feb. 24, at the state Capitol. The committees considered a plan, supported by Borton, to reduce taxes for seniors and working families.
State Rep. Ken Borton, who serves on the House Appropriations Committee, today announced his support for a plan to reduce taxes for working families and expand tax savings for seniors.
House Bill 5838, which would provide $1.7 billion in annual tax relief, today received approval from the House Tax Policy Committee, during a joint hearing with the Appropriations Committee.
“With inflation sweeping our nation, the bare necessities are more expensive everywhere you look in Northern Michigan,” said Borton, R-Gaylord. “Working families and seniors with limited income feel this crisis worse than anyone. Our tax cut plan will help people breathe a little easier as they keep more of what they’ve earned.”
HB 5838 would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working and retired families across Michigan.
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all their income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption. This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.
HB 5838 now advances to the entire House of Representatives for consideration.
State Rep. Ken Borton, of Gaylord, joined other House Appropriations Committee members today in advancing a budget plan that provides needed tax relief, makes crucial investments in public services such as roads and schools, and pays off debt.