Treasurer Says Income Tax Fix Must Account For Looming Downturn
The state treasurer says caution should be the watchword as the Legislature develops plans to deal with a glitch in the federal tax overhaul. If they don’t that glitch could cost Michigan taxpayers more in state income taxes.
As we hear from Michigan Public Radio’s Rick Pluta, there are differences among Republicans on what should happen next.
Governor Rick Snyder has proposed guaranteeing taxpayers can continue to claim the personal exemption. He even wants a modest increase, so it amounts to a small tax cut.
Treasurer Nick Khouri appeared on the Michigan Public Television show “Off The Record.” He says bigger returns to taxpayers require decisions to cut spending or find new revenue.
“You can’t talk about taxes unless you talk about spending." Khouri says. "You can’t talk about spending unless you talk about taxes.”
Khouri also says the state has to start preparing for the next recession. The state is now nine years into an economic recovery, and he says that won’t last forever.