$600 Weekly Fed Unemployment Boost Also Boosted Michigan Income Tax Collections
The amount of state income tax withheld from paychecks in Michigan was up 2.9% from November through July, compared to the same period in the previous fiscal year.
According to a Senate Fiscal Agency report, the increase is primarily due to income taxes withheld from people who received the $600 weekly benefits boost authorized by Congress this spring. The increase expired at the end of July. Individual unemployment benefits are subject to state income tax, which recipients may elect to have withheld.
Total state income tax collections for the same period are up 1.6%, compared to the previous year.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.