State Rep. Steve Frisbie has backed a measure to lower Michigan’s income tax rate as families continue to battle the challenges posed by inflation.

House Bill 4170 would immediately reduce the state income tax rate, which climbed from 4.05% to 4.25% on Jan. 1, 2024, after the Whitmer administration decided to end a reduction that had been triggered in 2023.

The reduction was triggered by a 2015 law that was enacted by Republicans to provide automatic income tax relief whenever state general fund revenues grew faster than inflation. When the provision was triggered in 2023, the tax rate dropped from 4.25% to 4.05% — a move intended to be permanent, according to the law’s architects. The nonpartisan House Fiscal Agency also observed at the time that the reduction would be permanent.

Despite this, the Whitmer administration and Attorney General Dana Nessel ruled that the tax cut was temporary, forcing a 5% tax hike onto everyone in Michigan.

The plan Frisbie signed onto would codify Michigan law to ensure that any future income tax cuts triggered by high state revenues will remain permanent.

“The people I represent are fed up with rising costs everywhere they turn. They need a break,” Frisbie said. “I want to see workers keeping more of their paychecks, and now that the state has collected more revenue than it needs, it’s the right time to make it happen.”

Over the past two years, state budget experts have repeatedly announced higher-than-expected revenue coming into the state.

Frisbie and other members of the House Finance Committee approved the bill this week, advancing it to the House floor for further consideration.

But that’s not the only tax cutting measure the Calhoun County representative is supporting. Frisbie also co-sponsored measures to make life more affordable for Michigan families by eliminating the sales tax on several baby and toddler necessity items, such as diapers, clothing, strollers, nursing supplies, and more. The plan also creates a child tax credit and establishes Child Care Savings Accounts that allow parents to deduct money spent on childcare from their taxable income.

“As a parent, I know that raising a child comes with a lot of expenses, both foreseen and unforeseen, and inflation has only made those costs worse,” Frisbie said. “The state shouldn’t impose a tax penalty on parents who are doing their best to raise safe and healthy children.”

HBs 4055-6 and 4058-9 were referred to the House Economic Competitiveness Committee.

Another tax-saving topic on Frisbie’s radar is aviation sales and use tax exemptions. This week, the representative testified before the House Finance Committee on his bipartisan bill package that would encourage aircraft owners to complete repairs in Michigan by eliminating sales tax on aviation maintenance parts and equipment.

“Battle Creek and Kalamazoo are home to hundreds of aviation maintenance jobs,” Frisbie said. “This is an industry that is putting food on tables in households throughout Calhoun County. We can’t underestimate the value these jobs have on our local and state economies.”

Frisbie lives in Pennfield, Michigan, just north of Battle Creek, which is home to Duncan Aviation, WACO Aviation, Centennial Aircraft Services and Western Michigan University’s Aviation Technical Operations.

HBs 4119-20 await committee passage before moving to be considered by the full House.

            Rep. Frisbie remains committed to making life in Michigan more affordable, cutting taxes, and eliminating wasteful government spending.