Advocacy News – February 15, 2022
Today, the Michigan Senate passed Senate Bill 768 to roll back the corporate income tax rate (CIT) and personal income tax rate to 3.9%, as well as provide taxpayers a $500 child tax credit for qualified dependents. The vote comes after the Michigan Chamber of Commerce submitted written testimony earlier this year to the Senate Finance Committee supporting the proposal but urging smart budgeting decisions and fiscal responsibility so the Legislature can continue the promised tax relief in the short- and long-term.
“With the unexpected influx of state funds created by the COVID-19 pandemic, subsequent federal appropriations and state revenue collections higher than previously projected, the Michigan Legislature has a unique opportunity to provide relief to Michigan taxpayers, thereby reinvigorating our economy and steering Michigan towards a more competitive business climate.
After the COVID-19 pandemic wreaked havoc on Michigan’s business community, allowing a corporate income tax (CIT) rollback posits the opportunity for employers recognized federally as C-corporations to rebuild and further invest in the future of their business, their employees, and their communities.
A reduction in the personal income tax has long been promised, but never delivered and would offer relief to Michigan taxpayers across every tax bracket. SB 768 touches and impacts every Michigan resident.
The Michigan Chamber of Commerce supports your efforts to provide tax relief to Michigan taxpayers. However, to keep the promises made under this bill, both in the short- and long-term, the Legislature must continue to make smart budgeting decisions in the appropriations process, including in the upcoming fiscal year.”
The bill, sponsored by Senator Nesbitt, received a vote of 22-16 and is headed to the Michigan House for consideration. For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.