Calls on Governor Whitmer to Preserve the Tax Cut Ahead of Her Budget Presentation
FOR IMMEDIATE RELEASE
LANSING, MI (Feb. 1, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association, today applauded the decision by the Michigan Supreme Court ordering the Court of Appeals to hear and decide on an expedited basis the case determining whether the income tax cut triggered in 2023 should expire or remain permanent.
“NFIB is grateful that the Court has recognized the urgent importance of this case and the need for clarity on the income tax rate for Michiganders,” said NFIB State Director Amanda Fisher. “We are hopeful that the Court will affirm the permanence of the tax cut going forward.”
Last year, NFIB along with the Mackinac Center for Public Policy and several others filed suit against the Michigan Department of Treasury’s decision to raise the personal income tax rate back to 4.25% in 2024. The rate was lowered to 4.05% last year thanks to a 2015 law that created a tax cut trigger. The trigger automatically lowers taxes when state revenue outpaces inflation by a set amount.
“Governor Whitmer claimed in her State of the State that she wants to help defray rising costs for Michigan citizens and grow Michigan’s economy. However, by denying the permanency of the income tax cut, she is actually giving Michigan citizens and small businesses a $714 million dollar tax increase,” continued Fisher. “As Governor Whitmer prepares for her budget presentation next week, we encourage her to offer real tax relief and reconsider the state’s opposition to maintaining the tax rate at 4.05%.”
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For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.
