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Wed June 27, 2012
Governor Signs Budget; Says Tax Cut Will Boost Economy
Governor Rick Snyder has signed the new state budget. It’s a spending plan he says leaves room for an election year tax rollback.
The tax cut would be a small-but-welcome pivot from last year when Governor Snyder and the Republican-led Legislature shook up the state’s tax structure. The Michigan Business Tax disappeared, along with a dozen tax breaks for seniors, homeowners, and low-income households.
Governor Snyder says the revenue picture is better this year, and a tax rollback offers unspecified benefits to the state’s economy.
“Any kind of giving back money to hard-working taxpayers is going to have a positive effect," Snyder says. "Am I going to try to quantify that? No.”
The governor is expected to sign bills to reduce the tax rate and increase the personal exemption in the next few days.
Most Democrats in the Legislature did vote for the rollback – although a few said the tax relief it offers is so small that money would be better spent restoring earlier cuts to schools and local services.