Federal tax reform has eliminated the personal exemption at the state level, and Michigan Governor Rick Snyder and Lieutenant Governor Brian Calley have developed a proposal to restore the exemption. Calley spoke with Michigan News Network about it.
“That’s what we’re proposing now is to restore an exemption that inadvertently goes away because of the federal changes,” Calley said. “They went to the standard deductions. You don’t claim individual exemptions at the federal level anymore, and our tax code says you can claim as many at the state level as you claimed at the federal level.”
Calley says it’ll mean a $640 difference for a family of four. He says they’re seeking to increase the state exemption as well. He hopes to see quick action in the Legislature.