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Income tax rollback clears first legislative hurdle

A state House committee today approved speeding up an income tax break for Michigan taxpayers.

The cut was originally scheduled to take effect in January, but would now move up to October if the legislation eventually becomes law.

The tax break would total about $90 million.

“$90 million to our hard working taxpayers I think is a good shot…a good start,” says Republican state representative Holly Hughes, one of the bills’ sponsors, “In this economy….if we can give back to the hard working taxpayers that’s what we want to do.”

At a committee meeting today, Democrats and Republicans both voted for the tax cut.  But that was their only area of agreement.

After the meeting, Democratic House Floor Leader Kate Segal said if Republicans want to have real tax relief they should reinstate many of the tax breaks taken away from the poor, middle class and senior citizens in the past year.

“Tax relief would be giving families back the $600 per child tax credit that was completely eliminated,” says Segal,  “Tax relief would have been restoring the Earned Income Tax Credit that was slashed last year.”

The State House may take up the income tax change before the end of the week. The State Senate must still consider the bills.

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.
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