Middle Class Tax Increases
When HB 4361 was signed into law by our Governor, a huge tax increase was placed on working families and retirees. This legislation raised individual taxes by $1.4 billion to pay for corporate tax cuts of $1.6 billion! Some of these tax increases include:
Pensions – Retired workers will pay $343 million more in pension taxes.
Personal Exemption – Phase-out of personal exemption will result in an $83 million tax hike.
Deduction for Children – Not being able to deduct your children will cost you $57 million.
Homestead Property Tax Credit – Changes will increase homeowner taxes by $270 million.
Elimination of Tax Credits – Taxpayers lost deductions for the city income taxes they pay ($37 million), contributions to colleges and libraries ($37 million) college tuition payments ($23 million) and other credits for contributions to homeless shelters, food banks and community foundations ($42 million).
Earned Income Tax Credit Cut – The EITC, a tax cut that goes to low income, working poor families, will be reduced by two thirds, raising taxes on poor families by $270 million.
Businesses, on the other hand, received huge tax cuts through the elimination of the Michigan Business Tax. Total tax cut – more than $1.6 billion.