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.
Governor Snyder released his education plan Wednesday morning in Detroit. The focus of the plan was on P-20 learning. His focus was on consolidating early childhood education, allowing for more charter schools, addressing teacher tenure and discussing academic rewards.
New Reports on the Governors Plan:
The Michigan State Senate has started to move the legislation on the 2011-12 budget out of committee and will vote this week on the proposals they put forward. (Click here for Senate Budget information.)
The Michigan State House will also start moving budget legislation from the committee level to a vote on the floor this week. (Click here for House Budget information.)
Both proposals will then as early as next week move to Conference Committee where they will work out the differences in the budget plans before final passage.
Once they reach an agreement the approved budget will go to the Governor for his signature.