Michiganders are in line for a cut in their state income tax bills. But Gov. Gretchen Whitmer’s administration is trying to block it from taking effect.
The tax cut is projected to save Michigan taxpayers as much as $330 million in 2023 and $600 million in 2024.
The automatic tax cut provision comes from Michigan’s 2015 road-funding bill, which includes a “trigger” for the state to lower its income tax rate beginning in 2023 if tax revenue grows faster than inflation. That’s likely to happen as state tax revenues rebound from the COVID-19 downturn.