Tax Relief Plans go into Effect as New Fiscal Year Begins
Michigan’s hard-working taxpayers will start keeping more money in their paychecks today as a broad-based tax relief plan reducing the state’s personal income tax takes effect, state Rep. Joseph Graves announced.
Public Act 223 lowered the income tax rate from 4.35 percent to 4.25 percent. PA 224 increases the personal tax exemption from $3,700 per person to $3,950 per person. Both plans took effect on Monday.
“Michigan residents work hard to earn their money and if there is any extra state revenue, it should be given back to the taxpayers who earned it,” said Graves, R-Argentine Township. “Being fiscally responsible has been key to turning our state around and I’m glad we’re getting this money back to our local economy where it belongs.”
Under PA 224, the personal exemption also will increase to $4,000 on Jan. 1, 2014.
Graves is extremely proud that fiscal responsibility has been a priority in Lansing. After the 2011-2012 session began with a $1.5 billion state deficit, reforms have resulted in more than $500 million in the state’s Rainy Day Fund. Legislative initiatives to streamline government also reduced Michigan’s debt by $20 billion and focused priorities mean more funding for K-12 education, roads and public safety while still finding ways to return surplus revenue to taxpayers.
“Michigan got to this point by being fiscally responsible and I look forward to seeing us accomplish much more for our residents by staying fiscally responsible as we move forward,” Graves said.”