Rep. Bob Bezotte today applauded a House plan that will lower income taxes for all Michiganders, give seniors additional tax relief, and pay down municipal pension debt.
The plan approved by the House Tax Policy and House Appropriations committees today cuts taxes for Michigan workers, provides genuine tax savings for retirees and pension protections, and guarantees vital benefits for more people who have worked and served in their communities.
“The governor’s tax plan is a good start but it only helps people who have government pensions,” said Bezotte, of Marion Township. “Under our more fair plan, tax relief expands to help all Michigan retirees, seniors and families.”
House Bill 5838 provides an estimated $1.7 billion in annual, ongoing tax relief. It starts with rolling back the income tax rate to 3.9 percent – down from the current 4.25 percent – for all individual payers of the Michigan income tax.
Seniors would be in line for additional relief. The income exempted from taxes for those 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers. An additional exemption would be applied specifically to retirement income – also at $20,000 for single filers and $40,000 for joint filers.
House Bill 5054 provides $1.5 billion in one-time funding to reduce debt and improve the finances of public employee retirement systems. Most of the funding would go to pension plans for local governments and road commissions, with an additional $350 million to improve financing in the Michigan State Police retirement system.
“We can’t have a strong, healthy state unless our local communities are strong and healthy,” Bezotte said. “Here, we have an opportunity to improve local government finances which ultimately helps everyone.”
HBs 5838 and 5054 now move to the full House for further consideration.
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