MI lawmakers working to change state tax code


LANSING, Mich. (WOOD) — Michigan lawmakers are working to change the state’s tax code following the Republican-led overhaul of the federal system.

After the federal law was passed, Gov. Rick Snyder said Michigan would have to make some changes, and act quickly.

“The state exemption was based upon the federal exemption,” said Sen. Tonya Schuitmaker, R-Lawton. “When the federal government took it down to zero, that kind of eliminated our exemption.”

She co-sponsored legislation that would restore and ultimately raise that exemption to $5,000 in time, which is a larger deduction than the current system.

It passed unanimously.

“It’s a fair tax cut,” said Senate Minority Leader Jim Ananich, D-Flint.

Every Republican and Democrat supported the plan.

“It’s equal across the board, everyone gets the same amount,” he said. “We thought that made a lot of sense and the conversations went really well with the majority leader and we were able to support Senator (Jack) Brandenburg’s bill and come out there unanimously.”

The bill passed in the Senate goes beyond the level called for by Snyder and is higher than a House bill being put forward by the Speaker of the House Tom Leonard, R-DeWitt.

“Next week, we fully intend to vote on our House bills and then we’ll sit with our partners in the Senate and we’ll work out a compromise,” he said. “I think we’re close enough that something can be worked out. Again, this is about providing tax relief to our hard-working citizens.”

There appears to be considerable optimism that a deal can be worked out and a compromise could be reached relatively soon.