Friday, January 06, 2017

That Would Be A Bold Move For Michigan In 2017

One Republican state senator here in Michigan has a rather bold and welcome proposal:

The Detroit News: Income tax elimination plan brewing in Michigan Senate

If successful, such a move would eliminate our current 4.25% income tax, all the paperwork and time that goes with it, and make the taxpayers of this state very happy indeed.

Of course, it would likely require an offset somewhere, likely an increase in the sales tax rate, to replace some of the 9.3 billion it would eliminate in revenue the income tax raises - but it likely would lead to increased sales tax and other revenue collected as people spend their money on their own preferences. Budget cuts, the bane of Democrats everywhere, would also be a logical step to account for reduced revenue and would be a good start.

Considering that seven other states, including Texas can, and do rather well without an income tax it is probably time for Michigan legislators to seriously consider eliminating our state income tax.

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