Michigan Republicans Flat Out Lying on Tax Cut Talk, It’s a Tax Increase!

The-Big-Tax-ShiftHere’s the Magician’s in the Republican controlled legislature with their slight of hand tricks selling a bad bill of goods and spinning the truth to the citizens. In 2007, in response to budget deficits, the personal income tax rate was increased to 4.35%, with a scheduled phase-out of 0.1% annually until October 2014, when the rate would have reached 3.9%. Now one Republican Senator wants to extend the 4.35% rate out to 2018.

In 2011, as part of a major state tax shift that reduced business taxes by 83%, while increasing personal income taxes by eliminating a range of tax credits and deductions, the personal income tax rate was maintained at 4.35%, with a rate reduction to 4.25% in January of this year. The net effect of the 2011 legislation was a state tax cut of $550 million annually, along with a shift in tax responsibility from businesses to lower- and middle-income families and retirees.2007 Actual Michigan Income Tax Rate Chart

When Snyder took office in 2011, however, he and fellow Republicans offset their $1.6 billion business tax cut with a $1.4 billion increase on individuals, which included taxing retirement income and not letting the income tax rate drop as much as planned.

Sen. Brandenburg Voted “NO” as a State Rep. while in the House in 2007 now he wants to extend this higher tax rate on the citizens of Michigan till 2018.

“That was a promise we made to people in ’07. I think that promise should be honored,” said Sen. Jack Brandenburg, a Republican from Macomb County’s Harrison Township. He plans to introduce tax cut legislation in the Finance Committee he chairs in January. The bills will call for dropping the rate a tenth of a percentage point each year starting in 2015 until it hits 3.9 percent in 2018.


2007 Public Act 94 is an act of legislation affecting the public as a whole hence public law


Public Act 94 of 2007
2007 House Bill 5194: Increase income tax from 3.9 percent to 4.35 percent

Tax Hike Fever


One Thought on “Michigan Republicans Flat Out Lying on Tax Cut Talk, It’s a Tax Increase!

  1. Taxes are personal taxes no matter which way they are shifted through sleight of hand. If you shift tax to a business, they pass on the cost of the taxes through an increase in the cost of their goods or services. Therefore, we must cut the cost of Gov’t and reduce ALL taxes–both business and personal.

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