LANSING, Mich. –Rolling back Michigan’s income tax would jeopardize jobs and the economy, and it’s fiscally irresponsible at a time the state has major budget shortfalls.
House Republicans last week proposed an income tax cut from 4.25 percent to 3.9 percent. A new fact sheet from the Michigan League for Public Policy explains why that’s bad for Michigan’s economic recovery.
“Cutting the income tax would hurt our chances of creating jobs, growing the skills of our workforce and building a strong economy,’’ said Gilda Z. Jacobs, president and CEO of the Michigan League for Public Policy. “We need to keep the economic momentum going, not jeopardize it.’’
Cutting the income tax would disproportionately benefit Michigan wealthiest taxpayers. In fact $3 of every $5 from the proposed tax cut would flow to the wealthiest 20 percent of Michigan taxpayers, those earning $89,000 or more.
Across-the-board income tax cuts would not boost Michigan’s economy but would contribute to rising income inequality, and further drain resources from public schools, community colleges, universities, healthcare and public safety—the very services that fuel economic growth.
The Michigan League for Public Policy, www.mlpp.org, is a state-level policy institute dedicated to economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.