From the Associated Press — The Michigan Senate has approved a tax cut that goes further than fixing an unintended consequence of the federal tax overhaul. A bill approved unanimously Wednesday and sent to the House would gradually raise Michigan’s personal tax exemption to $5,000, with future inflationary adjustments. That’s $700 more than what it will rise to currently, equating to an annual $30 tax cut per individual. The Senate also plans to vote next week to create a state tax credit for dependent care, such as caring for children or elderly parents. A couple with two dependents would save $490 a year. Governor Rick Snyder has proposed keeping intact and boosting Michigan’s personal tax exemption to offset unintended consequence of the federal tax cuts. But his administration has budgetary concerns with major tax cuts.
