LANSING, Mich. — Sen. Roger Victory on Thursday introduced legislation to reduce state income taxes for all Michigan residents.
“In the midst of growing state tax revenues and spending, hardworking Michigan taxpayers deserve financial relief,” said Victory, R-Hudsonville. “This plan would provide substantial tax relief to struggling families, seniors on fixed incomes, and locally-owned businesses dealing with higher costs.”
Senate Bill 151 would reduce the state’s personal income tax from 4.25% to 3.9%, rolling the rate back to what it was before a 2007 increase signed by then-Gov. Jennifer Granholm. The reduction would also cut taxes for small businesses that file under the personal income tax.
Victory said the cut is needed to make Michigan more competitive regionally.
According to the Tax Foundation’s State Tax Competitiveness Index, Michigan faces significant regional competition as taxpayers in Indiana, Ohio and Pennsylvania all pay lower rates.
“My bill would give Michigan taxpayers long-overdue tax relief, help our state compete for new talent and get our state back on track,” Victory said. “I believe we can provide relief while continuing to provide essential services and make important infrastructure investments.”
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