Policy Agenda

Many states have or are in the process of lowering their state income taxes. Michigan, however, has remained high (4.25%) and is the same as it has been since 2012! It is time to get serious about keeping Michiganders IN Michigan, and to do that, we need to lower our state income tax to a competitive level.

The best example of a starting point is House Bill 4170 (sponsored by Rep. Kathy Schmaltz), as it would lower the state income tax to 4.05%. We support lowering that number even further moving forward and would even support a scheduled rolldown where it would be lowered incrementally every fiscal year to assist with the budgetary process.

Lowering the state income tax is not just a win for the citizens of Michigan, but also for the small businesses that pay taxes on it as well. It would make Michigan more competitive for jobs, education, and housing. We would no longer be handing the competitive edge to neighboring states.