LANSING (WKZO-AM) — Rep. Aric Nesbitt, R-Lawton, has introduced a bill that would gradually — over the course of about 43 years — phase out Michigan’s income tax.
Under the bill, the state’s 4.25 percent tax rate would be reduced one-tenth annually until it reaches zero. The first decrease would be seen in 2018.
House Speaker Kevin Cotter hopes the proposal will lead to greater conversations when the legislature reconvenes next week about the state possibly relying more on consumption-based taxes in the future.
“Every state has a tax mix, they’re going to get their tax revenue one way or another, but it’s a question of do we tax income, or do we tax expenditures?” Cotter said.
Though Cotter wouldn’t tell Michael Patrick Shiels he supports the legislation, he does say he was happy to see it come through.
Another bill was also introduced before the spring break that would disallow cities from levying an income tax.
