Michigan Income Tax Increase: Will It Really Be Rolled Back?

October 1, 2007

According to The Detroit News, the new bill just passed to avert a government shutdown

would ratchet up the levy from 3.9 percent to 4.35 percent to raise $760 million. The rate would begin a gradual rollback in 2011 and return to 3.9 percent by 2015.

My question: Will the income tax ever be rolled back to 3.9 percent? Ever?

I predict that the Michigan income tax will never see 3.9 percent again. Ever!

This is the way government usually works: Squeak something in via “compromise,” place some kind of “rollback” or “sunset” provision in order to get it passed, and later pass new bills that remove the “rollback” or “sunset” provision.

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