The governor’s budget proposal is out, and it’s full of change across the board.
Governor Rick Snyder wants to do away with the Michigan Business Tax and replace it with a flat 6% corporate income tax.
Snyder also would cut tax credits to individual industries
Those include film industry credits, advanced battery credits and brownfield redevelopment credits, as well as tax–free Renaissance Zones.
Snyder is proposing a wide range of spending cuts that would hit higher education, K–12 education and municipal governments.
He is proposing a drop in the individual income rate from 4.35% to 4%.
But the income tax rate would be extended to all pension income, which is currently exempt from taxes.
Social Security income would not be taxed.
The plan would also phase out the personal income tax exemptions for single filers earning more than $75,000 or joint filers earning more than $150,000.
It would eliminate the Earned Income Tax Credit and reduce the Homestead Property Tax Credit.
Snyder wants the state legislature to pass the budget by the end of May.
He said he would give back his state salary of $159,000 and take a salary of just $1.