LANSING, Mich., March 1, 2022 – Today, Michigan House Republicans passed legislation that will amount to a revenue loss of $2.9 billion through fiscal year 2024 and an additional $2.9 billion lost in federal COVID relief dollars that will be recalled from the state. Reducing the states income tax from 4.25% to 3.9% is a prohibited use of federal relief funds. The true cost of this legislation, through FY 2024, amounts to nearly $6 billion from the income tax rate reduction alone. In response to the vote, House Democratic Leader Donna Lasinski (D-Scio Township) issued the following statement:


“This Republican tax shift is the most fiscally irresponsible action we’ve ever seen before in our chamber. Losing $6 billion in revenue is an astonishing hole in our government, and this wound to our state, our public services, our financial health will pain the people of Michigan for decades. We have $6 billion of our own Michigander’s money in covid relief funds, sitting right here in the state, and instead of getting this money to work for our people, Republicans are choosing to forfeit nearly half of it, $3 billion, back to the federal government in a punitive claw-back to appease the wealthiest people in our state who would benefit from this tax shift. It’s hard to view their fiscal recklessness today with anything but shameful disregard for the health of our state.”