Michigan Appeals Court Issues Temporary Verdict on 2023 Income Tax Cut
Michigan Judges Uphold 4.25% Income Tax Rate, Rejecting Push for Permanent Cut
According to The Detroit News, Michigan’s income tax will stay at 4.25% following a recent decision by a three-judge panel. The judges agreed with the state’s Attorney General Dana Nessel and Governor Gretchen Whitmer who argued that the tax cut last year from 4.25% to 4.05% was meant to be temporary. Republicans and business groups wanted the tax cut to be permanent. The court ruled that the law is clear – the default tax rate is 4.25% and any reduction should be reviewed each year.
READ ALSO: Sen. Wyden Unveils Tough Legislation To Combat SNAP Benefit Abuse
2023’s Income Tax Cut in Michigan Gets a Temporary Verdict from Appeals Court. (PHOTO: Michigan Advance)
Appeals Court Upholds One-Year Income Tax Cut in Michigan, Rejects Calls for Permanent Reduction
The case began when two business groups, Republican lawmakers and taxpayers challenged the idea that the income tax cut was only for one year. The judges said that the law’s words are clear enough and there’s no need to look at what was said when the law was passed in 2015. This decision settles a disagreement about whether the tax rate should permanently decrease after a certain amount of tax revenue is reached. The debate over Michigan’s tax policy and government spending may continue as some groups are considering further legal action.
READ ALSO: $5,000 Tax Credit To Support First-Time Home Buyers Biden Proposed – Are You Eligible?
