A 2015 state law mandated an income tax rollback, which went into effect last year, taking the rate from 4.25% to 4.05%
The question now is was that tax cut temporary? The Court of Appeals has yet to decide. Governor Whitmer has advocated for the higher income tax rate. Senate Minority Leader Aric Nesbitt of Van Buren County challenged the tax increase, saying the governor’s current budget would wipe out our surplus unless she’s willing to submit an alternate budget.
Nesbitt says if there’s no adjustment, and the tax cut remains, Governor Whitmer’s budget would leave the the state of Michigan with only $7-million on the books, which would put the state in a really bad spot.
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