HB 4288: This legislation is expected to save businesses organized as s-corporations, partnerships, limited partnerships, limited liability partnerships and limited liability companies almost $200 million in taxes per year.
Business types listed above, commonly referred to as “passthrough” businesses, will be able to fully deduct their state and local taxes (SALT) from their federal income under changes made in HB 4288 thereby, significantly reducing their federal tax liability. Because the legislation shifts the tax away from an individual and to the business entity, taxpayers can get out from underneath the federal $10,000 cap on SALT deductions.
SJR C (Irwin): This joint resolution would eliminate Michigan’s longstanding, fair, flat income tax and replace it with one with a graduated one. A flat rate income tax is when with one tax rate applying to all incomes. A graduated income tax rate, also called a progressive tax, is a tax structure that levies increasingly higher tax rates on higher-earning individuals or businesses. Essentially, under this kind of system: the more you make, the more you pay.
SB 20 (Zorn): The legislation would expand the allowable use of “Sinking Funds” to be used for the purchase of school busses. Sinking Funds are a special pots of resources a school district can request from taxpayers to use for very limited, capital improvements to real property. Sinking funds are funded by local property tax millages.