LANSING, MI (WKZO AM/FM) — State Representative Julie Alexander is voicing her support for a plan to reduce taxes for working class families and expand tax savings for seniors.
House Bill 5838, providing $1.7 billion in annual tax relief, advanced to the entire House of Representatives after approval by the House Committee on Tax Policy on Thursday. The plan would lower Michigan’s individual income tax rate from 4.25% to 3.9%.
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all their income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption.
This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.
