LANSING, Mich. (AP) — When Michigan lawmakers raised the state income tax in 2007, they required the tax to start dropping in 2011.
Now Gov. Rick Snyder must decide: Does he stick with letting the income tax drop a tenth of a percent in the budget year that starts Oct. 1 and continue to let it drop until 2015?
Or does he suggest freezing or even increasing the tax as part of an overhaul of Michigan's outdated tax structure?
Snyder spokeswoman Sara Wurfel says no decision has been made as the new Republican governor puts together a budget proposal to be presented Feb. 17.
Lowering the income tax will mean $150 million less in revenue next year and $700 million less in 2015 if the rate drops to 3.9 percent as scheduled.
