State Rep. Ken Borton and the Michigan House of Representatives today approved a tax relief plan to reduce the burden on seniors and working families across Michigan.
Senate Bill 768, a $2.5 billion tax relief plan, would reduce Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working families. The plan would also allow parents to receive a child tax credit of up to $500 per dependent under the age of 19.
“I’m thrilled to cast a resounding yes vote for tax relief,” said Borton, R-Gaylord. “Cutting taxes for the people of Northern Michigan has been a priority for me since day one — and even before I took office. Our plan will reduce taxes across the board, saving money for seniors and working families.”
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all 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.
After earning bipartisan support in the House, SB 768 now proceeds to the Senate, where passage is expected in the near future.
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.