Michigan House Republicans Forced to Re-Propose Income Tax Cut that was Unfairly Denied by Democrat Justices.  

Just yesterday, State Representative Kathy Schmaltz and a host of other house Republicans introduced HB 4170 — legislation that would lower Michigan’s income tax rate from its current 4.25% to 4.05%. The bill also clarifies the state’s automatic income tax reduction, ensuring that any future cuts are made permanent. 

Supporters of the bill argue that Michigan families are in dire need of financial relief:  

“Michigan families need a break. So many families are struggling right now just to keep up with rising costs — whether it’s groceries, gas, housing, or child care,” said Schmaltz. “People need relief, and they need it now. When state government collects more money than it needs, that money should go back to the hardworking people who earned it.” 

Many may be surprised to hear that this exact tax cut should have already happened. A 2015 law established the aforementioned trigger, and it was supposed to take place in 2023 when Michigan’s revenue exceeded inflation by an agreed-upon amount. 

However, the state’s highly partisan supreme court shut down what should have been a clear win for Michigan taxpayers. 

Their justification for this rejection was that the bill’s writers “intended the relief to taxpayers to be only temporary”. In a baffling turn of events, they maintained this opinion despite explicit statements from the bill’s actual writers denying the court’s interpretation.  

Rep. Schmaltz and the bill’s many co-sponsors intend to right this wrong and ensure that such a ridiculous interpretation can never happen again.  

Michigan, which has a significant population problem, has everything to gain from cutting income taxes. 

While the state’s rates aren’t the highest in the U.S., they’re comparatively worse than surrounding states like Ohio and Indiana. Income taxes are a primary consideration when people decide where to move. Keeping these taxes higher than the competition hurts Michigan in precisely the place they can’t afford. 

Case in point, almost every single state that’s gained population in recent years boasts little to no income taxes. 

If Michigan wants to succeed, they are going to have to make sound, economically beneficial decisions. Governor Whitmer, who wants to raise taxes because she can’t figure out how to “fix the damn roads ” in the 10^th highest spending state in the nation, refuses to supply Michigan with the economic reform it so desperately needs. 

Republicans are proposing a clear, proven solution to bring investment and growth to a state grappling with population loss and declining economic competitiveness. If legislators want to bring the state to its former glory, then they have to, like Rep. Schmaltz, bring bills to the table that will make Michigan competitive again.  

The decision, ultimately, is dependent on Michigan’s Democrat-controlled senate and Governor Whitmer— and whether they’re willing to follow the lead of burgeoning states like Texas and Florida, or whether Michigan’s slow decline will remain a cautionary tale for years to come.