House Republicans have scheduled a vote Wednesday on two bills that would lower the state’s income tax by one-tenth of a percentage point and increase the personal exemption on Oct. 1.
The proposed tax cut from 4.35 percent to 4.25 percent was scheduled to go into effect Jan. 1, but Republicans want to speed up the reduction by three months and raise the personal exemption from $3,700 to $3,950.
House Republicans appear to be in a hurry to pass the tax cuts before the Legislature adjourns for the summer on June 28 (a date some lawmakers want to adjourn by June 14 to let the summer vacation and campaigning season begin two weeks early).
The tax cuts and an overhaul of the retirement system for public school employees are the major issues that remain following the Legislature’s final passage of the 2013 fiscal year budget.
Senate Majority Leader Randy Richardville, R-Monroe, said Tuesday he’s more interested in making sure major legislation is “done right” than sent to Gov. Rick Snyder before the summer recess.
“I think we need to prioritize what we want to try and get done,” Richardville told reporters after the Senate passed the $14.6 billion education funding bill. “The only time I’ve seen the Legislature make mistakes is when it tries to hurry through something.”
House Democrats have mocked the size of the tax cut after the Legislature hiked income taxes last year on most individuals through the elimination of popular credits, deductions and exemptions.
But House Democrats likely won’t vote against an income tax cut in an election year. The bill is expected to get a wide margin of bipartisan support, said Minority Floor Leader Kate Segal, D-Battle Creek.