The Michigan House today approved legislation to simplify the state’s tax structure to increase competitiveness in attracting job providers.
“Michigan needs to grow out of this jobs deficit,” said House Speaker Jase Bolger, R-Marshall. “To help job seekers we need to make Michigan a more competitive place to provide a job. The biggest winners today are local, family business owners and Michiganders looking for work.”
The legislation revises Michigan’s current tax structure and replaces it with a flat 6-percent corporate income tax.
This legislation:
Allows residents who turn 67 during 2012 to maintain their current exemption status on pensions;
Gives those who turn 60 to 66 during 2012 an exemption on up to $20,000 of any retirement income ($40,000 for those who file jointly);
Removes retirement income exemptions for anyone born after 1952 until they turn 67, when they will receive a $20,000/$40,000 exemption against all income;
Maintains tax exemptions for Social Security income and military pensions;
Implements a new child credit for the working poor; and
Credits that have already been awarded under the MBT, such as MEGA, brownfield redevelopment, renaissance zone, film production and other credits would be retained for the duration of the agreements, but no additional credits would be awarded after 2011.
“Michigan ranks 48th worst in the country for corporate tax competitiveness and we’re 45th worst for unemployment. I firmly believe those rankings are connected,” Bolger said. “This legislation reflects what our caucus determined to be our guiding principles – that our priorities are to make Michigan a better place to provide a job and raise a family.”
These bills reflect months of testimony and a close working relationship with the Governor and Senate to provide a blueprint to reinvent our state.
“We heard a number of concerns raised about the governor’s original plan. The bills approved today are a result of months of listening to Michigan families and job providers regarding our state’s future,” said Bolger.
House Bills 4361, 4362 and 4479-4484 have been sent to the Senate for approval.