Michigan House approves rollback of income tax rate in 65-43 vote; Republicans tout relief, Democrats call benefits skewed to wealthy

The Michigan House of Representatives on March 18 passed House Bill 4170, a measure to lower the state income tax rate under the Income Tax Act of 1967, by a vote of 65 to 43 and ordered the change to take immediate effect.

Supporters said the bill restores a tax cut they described as intended to be permanent and provides relief for Michigan households and small businesses. Opponents said independent modeling shows the majority of the benefit would flow to the wealthiest residents, leaving minimal relief for low-income households.

House Bill 4170, introduced by Representative Schmaltz and taken up for immediate passage by the majority floor leader, would adjust the state income tax rate as described in the bill text. Representative Forman, speaking in opposition, cited analysis by the Institute on Taxation and Economic Policy and said, “Nearly 64% of the tax cut for this legislation would go to the wealthiest 20%.” He added that households earning less than $27,000 would receive an average of about $11, saying, “$11 can't…