LANSING, Mich. — Sen. John Bizon, M.D. on Tuesday voted in support of the Senate passing a historic $2.5 billion tax cut plan to reduce personal and business income tax rates, provide families with a $500 per child tax credit, and protect more retirement income for Michigan’s seniors.
“Michigan’s General Fund has amassed a strong surplus and as a member of the Senate Appropriations Committee, I feel strongly that excess tax revenue should be responsibly returned to taxpayers whenever possible,” said Bizon, R-Battle Creek. “It is not the Legislature’s money or the governor’s money after all; it belongs to people who sent it to Lansing in the first place.”
Senate Bill 768 would lower the state’s personal and business income tax rates to 3.9% from 4.25% and 6%, respectively, and provide families with a $500 per child tax credit. The legislation also increases the tax exemption for all retirement income to $30,000 for individuals and $60,000 for couples.
“While I am personally in favor of doing more for seniors, including lowering the age to receive the exemption, I believe today’s legislation is a good start in the right direction,” Bizon said. “For many who are living on fixed incomes they already earned, the historic inflation that has followed Washington’s massive spending sprees has seriously impacted their monthly budgets.”
The senator also pointed to the need to find relief for businesses facing many of the same challenges.
“We have seen too many small businesses forced to close their doors for good over the past two years,” he said. “Just today, Bloomberg reported inflation surpassed economists’ predictions as Michigan companies are contending with supply-chain disruptions, labor constraints, elevated fuel and energy costs. They report that inflation, while everywhere, is growing momentum in Michigan, where we have seen increases for 21 straight months.”
Bizon noted that the state’s General Fund budget is maintained separately from restricted funds, such as the School Aid Fund for education and State Trunkline Fund for roads. It also does not include federal money the state has received to battle the effects of the coronavirus pandemic and invest in generational infrastructure improvements.
“There is a stark contrast between the health of state’s General Fund and the average Michigan family’s budget,” Bizon said. “Many are still struggling to recover from the economic downturn of the past few years and everyone is impacted by the continued supply chain crisis and 40-year high record inflation. The time has come to help the residents of state keep more of their hard-earned dollars so that they can put food on their tables, heat their homes, fill up their gas tanks, and grow their small business and dreams.”
SB 768 now moves to the House of Representatives for consideration.