LANSING, Mich. (AP) -- The Michigan House has approved legislation that would drop the state's income tax rate to 3.9 percent by 2018.
The bill passed Thursday by a 97-13 vote would drop to 4.2 percent on Jan. 1 and go down each year. The annual fiscal year revenue loss is estimated to be about $800 million in six years.
Lawmakers recently passed legislation cutting the current income tax rate from 4.35 percent to 4.25 percent on Oct. 1, three months earlier than scheduled. That will save average taxpayers about $10 per person.
The measure moves on to the Senate.
Changes approved last year by Republican Gov. Rick Snyder and the GOP-led Legislature mean individual income taxpayers will pay $1.4 billion more next year based on 2012 income while businesses pay $1.7 billion less.
