State Rep. John Reilly and the Michigan House of Representatives today approved a plan to reduce taxes for working families and expand tax savings for seniors.
Senate Bill 768 would provide an estimated $2.5 billion in annual tax relief to the people of Michigan. The plan would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working and retired families across Michigan. The plan would also allow parents to receive a child tax credit of up to $500 per dependent under the age of 19.
“Inflation is raising the costs for food and other items Michigan residents need,” said Reilly, R-Oakland Township. “Yet the heavy hand of government is still held out eagerly for the same taxes as usual. I strongly support this tax cut to lift some of the burdens off all Michigan families — retired and in the workforce.”
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.
After earning bipartisan support in the House, SB 768 now returns to the Senate for consideration.
# Date Explanation 2 13-Jan I proudly voted yes to elect Jason Wentworth as Speaker of the Michigan House of Representatives. Speaker Wentworth is an exceptional leader who will do what is right for our State. I look forward to working with him over these next two years. Speaker Wentworth was elected unanimously. 3 13-Jan […]
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