A tax break package has been approved by the Michigan House that would reduce the state’s income tax rate from 4.25% to 3.9%. State Representative Pauline Wendzel tells WSJM News it also includes a break on pension taxes.
“The plan will increase the income tax exemption starting in the year 2022 for those age 62 and older,” Wendzel said. “Currently, it’s 67 and older.”
Wendzel says with the state now experiencing a surplus, the time for tax breaks is now.
“It’s no secret that a lot of Michiganders are struggling right now. We believe that this is the time to do that, to lower taxes. Republicans and other politicians are always talking about lowering taxes, and now we’re putting the money where our mouth is, and we’re going to lower people’s taxes.”
The package also creates a nonrefundable child tax credit worth $500 for each qualified dependent. Wendzel says that would save a family around $1,200 per year. The plan matches one already approved in the state Senate. Wendzel says it now goes on to the governor.
