LANSING, Mich., March 4, 2022 — The Michigan House of Representatives voted to pass Senate Bill 768 this week, legislation that would lower the income tax rate to 3.9% from its current rate of 4.25%. 

Under the new plan, the bottom 20% of earners would see an additional $12 on average, the middle 20% would receive $92 and the top 1% would get $4900. Additionally, the bill would reduce revenues to the state’s General and School Aid funds by nearly $1.7 billion for this year and around $2.4 billion each subsequent year. State Rep. Mary Cavanagh (D-Redford), who voted against the bill, issued the following statement: 

“This is simply another way for Republicans to disguise tax benefits for the rich in the name of the poor. Under this plan, those who need it most will see pennies in savings compared to the thousands that the wealthy will receive. 

“These cuts aren’t fiscally responsible. Enacting permanent tax cuts for the rich funded by temporary American Rescue Plan funds is downright reckless. The Republican plan will have disastrous consequences on future budgets and do little to help those who need real relief. Our seniors and working families need a progressive tax structure and the repeal of the Republican retirement tax, not unsustainable cuts to an already outdated form of taxation.”