Phasing out income-tax revenue a dangerous game | Bridge Magazine

Lansing’s tax-cutting obsession is leading Michigan down the drain” – Phil Power

Ninety minutes.  That’s all it took last week for the House Tax Policy Committee to hear testimony and send the full House a bill that would gradually phase out the Michigan personal income tax.

The bill, passed 7-to-4 on a straight party-line vote (with a couple abstentions), would cut the tax rate from 4.25% to 3.9% next Jan. 1, and by 0.1% each following year until the tax is eliminated entirely in 2057. State revenue loss in the first full year was estimated at $1.1 billion out of a $9 billion state general fund.

There was no discussion of what would need to be cut — or where any new money to make up the difference would come from.

That’s what passes for the “careful deliberation” our lawmakers devoted to state tax policy when they considered a measure that would leave a giant hole in the state’s already stretched budget.

Read the rest of the opinion essay here: Phasing out income-tax revenue a dangerous game | Bridge Magazine

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