Snyder's Tax Reforms Debated in the House

By: Jamie Edmonds Email
By: Jamie Edmonds Email

Lt. Governor Brian Calley presented the revised version of the Snyder Administration's tax reforms to the House Tax Policy Committee Wednesday.

Last week, Snyder and the leadership in both houses agreed to have taxes on pensions under a certain age and above certain income levels phased in, but a representative for a state retiree association still sees the whole plan as breaks for businesses.

"We think the tax shift to seniors, albeit under the age 67, is still unfair and the governor and the legislature have to keep working," Mary Pollock, the legislative representative for the Michigan State Employees Retirees Association, said.

New revisions to the tax code include restoring a portion of the EITC for the working poor.

"Someone eligible for the EITC today, if they have children, each child would get a $25 tax credit against state income tax under this plan," Rep. Jud Gilbert, R-Algonac, said.

That's on top of other changes agreed upon to the Homestead Tax Credit, equaling about a $100 million, which was not apart of Snyder's original plan.

"Overall the changes are targeted to people with low or moderate income," Lt. Gov. Calley said. "We feel that is a reasonable change to make in our system going forward."

Democrats on the committee had some harsh criticisms of the plan for the Lt. Governor, but the Republican chair of the committee said these revisions might be all that's needed to get it passed through his caucus at least.

"This made it a lot easier for a lot of people to vote for it," Gilbert said, "I don't think we had a count before, but these changes helped a bunch."

The committee has not received the draft of the bill, which means there is no timetable for a vote yet.


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