Mich. House votes to suspend income tax exemption

WKAR Public Media

Published October 6, 2009 at 6:28 PM EDT

By AP

LANSING, MI – The Democratic-led state House has voted to suspend an inflationary increase in the personal exemption on Michigan's income tax to help avoid deeper spending cuts in state government.

A bill approved Tuesday 58-51 mostly along party lines would save roughly $55 million in the new budget year. The legislation next will be considered by the Republican-controlled Senate.

The personal exemption on the state income tax is supposed to go from $3,500 to $3,600 this tax year. The freeze would cost taxpayers $4.35 for each person claimed as a deduction on their income tax form.

SUSTAIN what matters. BUILD what’s next.

With federal funding eliminated, WKAR relies more than ever on community support to sustain essential services that remain freely available to everyone in mid-Michigan. Your support helps shape what comes next for public media in our region. The best way to support WKAR is by becoming a sustaining member today or by upgrading your current gift. Support WKAR TV Here | Support WKAR Radio Here.