State Sen. Kim LaSata on Tuesday voted in support of legislation that would provide a historic $2.5 billion tax cut for Michigan families, seniors and businesses.
“While it is good news that our state budget is in good shape, it is important to remember that family budgets across the state are being stretched thinner and thinner as inflation hammers their pocketbooks,” said LaSata, R-Niles. “Families are having a hard time keeping up with their bills and day-to-day expenses, seniors are struggling to get by on fixed incomes and businesses are still fighting to keep their doors open.
“I’ve long supported letting people keep more of their hard-earned money — this legislation was easy to support.”
Senate Bill 768 would provide tax relief to Michigan families and businesses by lowering the state’s personal and business income tax rates to 3.9% from 4.25% and 6%, respectively.
The legislation would also provide families with a $500 per child tax credit and aid Michigan seniors by increasing the tax exemption for all retirement income to $30,000 for individuals and $60,000 for couples.
“Michigan residents are paying more of their income to state government than our neighbors in Indiana. In order to stay competitive, we must find a way to keep the cost of living lower on this side of the border,” LaSata said. “Under this plan, a family of four could see annual savings of approximately $1,200.”
The senator applauded the vote as an opportunity to offer meaningful relief and help families and businesses get back on their feet.
“This is a commonsense plan that puts people first,” LaSata said. “Every dime the government receives comes from hardworking taxpayers and when we have a surplus of this magnitude, I believe we should return money to its rightful owners wherever possible.”
SB 768 now goes before the Michigan House of Representatives for consideration.