News Bite

Schools To Get $6.1B From COVID Money; Teachers Union Still Opposes Tax Cut

Public school districts in Michigan will receive $6.1 billion in federal taxpayer money for COVID-19 relief. But the state’s second largest teachers union says even so, the state can’t give taxpayers a break and make good on a promise broken 15 years ago.

American Federation of Teachers Michigan came out against the idea of rolling back the state income tax.

AFT Michigan said in its newsletter: “The Senate Republicans passed SB 768 along party lines which would lower individual income tax from 4.25% to 3.9% and the corporate income tax from 6% to 3.9%. The tax cut would reduce revenue to the General and School Aid Fund between $1.77-1.81 billion during fiscal year 2021-22 and upwards of $2.61 billion by the time the cuts are fully phased in 2024.”

As Michigan Capitol Confidential has reported: “The income tax was increased in 2007 from 3.9 percent to 4.35 percent, an 11.5 percent increase, to avoid a government shutdown and spending cuts. It was supposed to roll back to 3.9 percent 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.