2/8/11
- With the legislature now dominated by Republicans, a state lawmaker from
the area is predicting a shift in Michigan’s tax structure in the current
legislative session. State Rep. Cindy Denby of Handy Township and State Rep.
Bill Rogers of Genoa Township both spoke at the Howell Area Chamber of Commerce’s
Good Morning Livingston meeting Tuesday. Denby predicts newly-elected Gov
Rick Snyder will call for a change in the state’s tax structure when
he unveils his new budget proposal on Feb. 17. The question is whether he
will propose a decrease in the state’s income tax or a tax freeze.
The legislature raised the state income tax in 2007, and the measure required
the tax to start dropping beginning this year. Snyder could call for a complete
overhaul in the tax structure, which has been called outdated and anti-business.
Denby also hopes for a restructuring or complete elimination of the Michigan
Business Tax and the business surcharge. Lowering the income tax would mean
$150 million less in revenue next year and $700 million less in 2015 if the
rate drops to 3.9 per cent as scheduled. The new budget year starts in October.(TT)