$2.5 Billion Income Tax Cut Clears Michigan Legislature

The Michigan House and Senate passed a sweeping tax cut Thursday that would amount to roughly $2.5 billion in relief for residents.

The Republican-backed bill. (H.B. 4568) would drop the state’s flat income tax rate to 4% from 4.25% beginning in the 2023 tax year and raise the personal income tax exemption by $1,800. The 2021 exemption was $4,900. The bill also would adopt several tax measures sought by the Legislature’s Democrats, including an increase in the state’s earned income tax credit up to 20% of the federal credit, an increased exemption for ...