News Bite

Schools Collect $6.1 Billion Federal COVID Bucks, Teachers Union Calls State Tax Cut Irresponsible

Billions more pouring into Michigan schools but no breaks for state taxpayers so far

Michigan’s largest teachers union has called a state income tax cut worth $2.5 billion annually and passed by the Legislature last week an election-year stunt. The bill would cut the tax rate from 4.25% to 3.9%, and is said to honor a promise made by lawmakers when they imposed the increase in 2007.

The Michigan Education Association stated in a March 7 story published on its website, “This irresponsible, unsustainable tax giveaway will cause shortfalls for education funding at a time when students and schools can least afford it.”

Public schools in Michigan are collecting an additional $6.1 billion in funding from federal COVID-19 relief.

As Michigan Capitol Confidential has reported: “The income tax was increased in 2007 from 3.9% to 4.35%, an 11.5% increase, to avoid a government shutdown and spending cuts. It was supposed to roll back to 3.9% starting in 2011, but Gov. Rick Snyder and the Legislature agreed to limit the roll-back to a mere one-tenth of one percentage point.”

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.