Michigan Moves To Boost Personal State Tax Exemption

From the Associated Press — Governor Rick Snyder’s administration is proposing legislation so taxpayers can continue claiming Michigan’s personal exemption in the wake of the federal tax overhaul, and also is calling for a large state exemption increase. The plan was first unveiled Monday by Lieutenant Governor Brian Calley, who is running for governor. The administration has warned that state taxes will rise if nothing is done. Calley tells The Associated Press that while 98% of the potential tax increase is because of how Michigan’s exemptions are linked to the U.S. tax code, Michigan’s personal exemption should be raised to address other issues such as the elimination of deductions for moving expenses. Calley says the “simplest, most fair answer” to protect people is to increase Michigan’s $4,000 personal exemption to $4,500 by 2021.