How did northern Michigan Representatives vote last week on the Tax Plan.
This week the State Senate will review the series of tax reform bills that passed the State House last week. The question will be how different will the senate bills look from the house bills. Most insiders believe they will have differences that will need to be worked out in conference committee. That meeting most likely will not take place until after the May 16th release of the revenue projections for the remainder of 2011 and start of 2012.
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The Michigan State House approved the tax plan Thursday afternoon on a 56-53 vote. The plan replaces the Michigan Business Tax (MBT) with the 6 percent corporate tax that Governor Snyder proposed in February. The new tax plan also freezes the current income tax rate at 4.35%, eliminates the Earned Income Tax Credit(EITC) and the film credits. It also eliminates the exemption for pensions based on a sliding scale those above 67 will not pay, 60-66 pay less and under 60 would pay the same income tax rate as others over several different income level caps.
The House bill now moves to the senate where further discussion on the pension tax portion is expected.