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A new lawsuit filed in the Michigan Court of Claims is trying to make this year’s surplus-driven income tax cut permanent.
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New revenue forecasts out Friday show Michigan’s recent slew of tax changes could cost the state billions over the next few years.
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The state has officially closed the books on the previous fiscal year with a surplus that triggers an income tax cut of 0.2% for this current tax year.
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After weeks of buildup, a Democrat-backed tax plan that’s been at the top of the party’s priority list has made it out of the Michigan House. Though the road has been far from smooth.
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Governor Gretchen Whitmer and the Michigan Legislature’s Democratic leaders rolled out a tax relief plan Monday that includes expanding the Earned Income Tax Credit and cutting taxes for pensioners. Democrats also want to send out $180 rebate checks as part of the deal.
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Early projections show Michigan’s revenue could be high enough to trigger an automatic income tax cut laid out in a 2015 law. Republican lawmakers say they should get credit for the policy.
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The Michigan Legislature is proposing more than $2.5 billion in tax cuts.
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Michigan House Republicans are pushing to lower the state’s personal income tax rate.
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The Republican-led Michigan Legislature voted Wednesday to override Gov. Rick Snyder's veto of a speedier tax cut for those who trade in their car for a…