Republican Gov. Rick Snyder's plan to cut business taxes and eliminate or reduce tax exemptions for some retirement income has cleared its first hurdle in the Michigan Legislature.
A Republican-led House committee approved bills included in the plan by mostly party-line votes Wednesday. The measures next advance to the House floor.
The plan would replace Michigan's main business tax with a 6 percent corporate business tax. Business taxes could be reduced by roughly $1 billion in the fiscal year that starts in October.
Some retiree income would be taxed. Those who will be 67 and older as of Jan. 1, 2012 would continue to get the same tax breaks they do now.
The proposals are a key part of Snyder's overall state budget plan.
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