State Representative Bill G. Schuette today voted to reverse a previous Democrat income tax hike and provide real relief for workers and families throughout Michigan.

“Michiganders are struggling to pay grocery bills, fill up their gas tanks, cover their mortgages or rent for the month and keep up with rising childcare costs,” Schuette said. “Our priority in the Legislature should be returning money to hardworking taxpayers so they can help make ends meet. This plan is a critical step in that process.”

House Bill 4170 will lower the state income tax rate to 4.05% as of Jan. 1, 2025, ensuring that Michigan taxpayers keep more than $700 million of their hard-earned income each year. Because of large state revenue growth that exceeded inflation, an existing law had automatically lowered the rate to 4.05% from 4.25%. However, state Attorney General Dana Nessel declared that this reduction was only temporary, and Gov. Gretchen Whitmer pressed forward with the higher tax rate to help balance her budget plans.

HB 4170 reinforces the 2015 law intended to trigger the automatic income tax reduction, preventing future administrations from undermining permanent tax relief as the Whitmer administration did in 2024. The nonpartisan House Fiscal Agency has previously observed that the reduction should be permanent.

“Unfortunately, the lower income tax rate was wrongfully erased through fiscal finagling and nickel and diming people like us in Midland and Gladwin counties,” Schuette said. “This clarifies our laws so state government can’t pull a fast one on hardworking taxpayers like this again.”

In January, state budget experts projected that Michigan would collect $850 million more in revenue than previously anticipated — more than enough to cover the proposed tax cut.

HB 4170, which cleared the House in bipartisan fashion, now advances to the Senate for further consideration.