Michigan Rep. Bryan Posthumus wants to abolish the state’s income tax – But it won’t be easy
A new plan is taking shape in Lansing.
On January 1, 2024 the Michigan state income tax rate increased from 4.05 percent to 4.25 percent after key economic milestones were missed in 2023.
In 2015, a law was passed requiring a temporary reduction to the income tax rate if revenue in the Michigan General Fund ever outpaces inflation. In 2022 that was the case, and so the typically 4.25 percent income tax rate in Michigan was reduced by requirement to 4.05 percent for 2023.
For 2024, however, the general fund did not outpace inflation in 2023 and so the Democrat-controlled state legislature raised the rate at the start of this year.
"The people of Michigan need to know," Posthumus said. "They need to know that Republicans are extremely interested in drastically lowering the state income tax immediately and eventually removing it. I want it removed. We want it removed. But first, we need new a legislature in place who share the vision.
According to Posthumus, various versions of state income tax reduction or outright abolition have been suggested by Republicans in the past-- both in and out of majority -- but Democrat factions and now the fully Democrat-controlled State Government managed to block them all.
"The leaders controlling our chambers right now need that tax in place. And they need it to go up. They just passed a record budget, and are preparing to do that again. They need massive tax revenue to fund their vision for Michigan. We do not. Bottom line: if Michigan wants a 4 percent raise across the board, then it needs new leaders to join me and reclaim legislative momentum. And it needs them now."
The Floor Leader says his first step will be ensuring Mchigan is able to hit economic targets more easily in the immediate future before moving onto new legislation further down the road.
“The first step with any injury is to stop the bleeding,” Posthumus. “We need to get back to a time when this state was growing both its population and its economy. I believe that is possible. But it will take change and it will take commitment. It will take leaders willing to lead and it will take leaders willing to stick their neck out. On the Republican side, we have those. If the people of Michigan want it, we will make it happen.”
Rep. Posthumus will be releasing more information on this plan throughout the year.