Tax Cut Plans Dim as Focus Shifts to Potholes

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LANSING, Mich. (AP) -- An income tax cut seemed inevitable just two months ago, as Michigan Gov. Rick Snyder and Republican lawmakers offered up and even began passing rival plans to use some of a budget surplus for tax relief before the 2014 elections.

Now plans for a tax reduction are waning and shifting instead to addressing pothole-ridden roads.

Snyder says he's open to dropping his tax plan to set aside more money for transportation. He attributes the shrinking interest in tax relief among legislators to drivers who voiced frustration with crummy roads.

Legislative leaders aren't ready to give up on tax cut discussions but acknowledge that road funding could ultimately be a higher priority. New revenue estimates for the next budget in mid-May could prove crucial.

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