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Legislature Opens 2018 With Talk Of Tax Cuts

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The Legislature is back in session for 2018, and an early priority is dealing with taxes. Michigan Public Radio’s Rick Pluta explains, talks are underway to figure out how to make sure the federal tax overhaul doesn’t cause a spike in state income taxes.

There appears to be bipartisan agreement that a fix is needed. The new federal tax law zeroes out the personal exemption. That means Michigan income taxpayers can’t claim the state personal exemption.

But Republicans still don’t agree on exactly how to deal with it.

Governor Rick Snyder has proposed allowing taxpayers to claim the exemption regardless of federal law.

State Senate Majority Leader Arlan Meekhof says he’s not on board yet.

“This is a good start, but we think there’s an appetite to do more.”

Meekhof says the Senate Finance Committee will hold hearings to come up with a plan to make sure Michigan taxpayers don’t get hit with an increase. 

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
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