Michigan taxpayers could be in for a larger than expected tax break. On Thursday, House Republicans introduced a bill that would bring Michigan's income tax rate from 4.35% to 3.9% by 2018.
"This year we started the budget process with a $400 million budget surplus. We think it's time to give some money back to the taxpayers," said Rep. Nancy Jenkins, R-Clayton Twp.
House Democrats are in part supportive of the change, considering they say it's a just a delayed move on something they proposed.
"I'm thrilled the Republicans came to their senses today after ignoring my amendment yesterday. They came to their senses today and introduced a bill that would do exactly what I was proposing yesterday. Unfortunately, it wouldn't do it quite as quickly," said Rep. Tim Greimel, D-Pontiac.
Rep. Greimel's amendment calls for lowering the tax rate to 3.9% by October 1, 2012. He says that would save the average taxpayer about $300 per year.
"These tax hikes that the Republican majority imposed have happened immediately...and I think the people need to be compensated for those tax increases immediately," Rep. Greimel said.
Both sides do agree that the economy is looking up and the state can afford to provide a tax break.
"We're not making any cuts to services or anything like that to put this in place, so the money is there," said Rep. Jenkins.
Lawmakers say that money will have far-reaching benefits.
"This bill if it passes will provide the meaningful tax relief the middle class families deserve," said Rep. Greimel.
"We give more money to the taxpayers, that goes into the economy and comes back in revenue to the state," said Rep. Jenkins.
