Typical Household Has Lost $1,134 To 2007 Michigan Income Tax Hike

Despite GOP control, ‘temporary’ income tax hike has still not been rolled back

A Michigan milestone passed last fall with no official fanfare: Oct. 1st, 2017, was the 10th anniversary of an 11.5 percent rise in the state income tax. The increase was enacted by a Democratic governor, a Democratic-controlled House, and a Republican-controlled Senate.

Many news stories at the time reported that the income tax rate increase from 3.9 percent to 4.35 percent would generate about $600 million in 2007. They described this as a modest change: A family making $50,000 a year would pay less than $350 a year extra.

But it adds up. As a result of that tax hike in 2007, the people of Michigan have paid $7.1 billion to $8.3 billion more to Lansing than they would have without the tax hike. These figures come from an analysis by James Hohman at the Mackinac Center for Public Policy.

Hohman found that a typical household with the median income of $45,981 as of 2011 would have kept an extra $1,134 by now if that tax hike had not been approved.

Stay Engaged

Receive our weekly emails!


Related Articles:

Here's Why You Deserve a State Income Tax Cut

Happy 50th Birthday Personal Income Tax

Rise In State Revenue Far Exceeds Cost Of Defeated Income Tax Cut

Income Tax Cut Could Bring 15,000 New Jobs to Michigan

Michigan Income Tax Cuts Remain Affordable

Stay Engaged

Simply enter your email below to receive our weekly email:

Facebook
Twitter

Detroit Prep is a top-rated and economically and racially diverse charter school in the city. It's growth means it needs to move out from a church basement and into a new location. Nearby is a former Detroit Public Schools building, sitting empty for years. But, worried about competition, the public school district refused to sell. For years, district and local government officials in Detroit had worked to block public charter schools. They pushed legislation at the Michigan Capitol to hinder them, refused to sell to them, transferred surplus buildings from the district to the city government and imposed deed restrictions on property sales to private developers. All of it was aimed to hinder or even prevent charter school choice outside the confines of the Detroit school district.

Related Sites