House Speaker Tom Leonard
In a "stunning failure," as The Detroit News describes it, a plan to cut Michigan's personal income tax rate was narrowly defeated 55-52 early Thursday. The bill was backed by new Republican House Speaker Tom Leonard but opposed by Gov. Rick Snyder, Democrats and a small number of Republicans.
The proposal would reduce the state’s income tax rate from 4.25 percent to 3.9 percent by 2021.
“It’s unfortunate,” Leonard said after the vote, which largely fell along party lines, reports Jonathan Oosting. “We wanted to produce legislation that was going to bring income tax relief to the hardworking taxpayers of the state."
Only one Democrat voted for the tax cut plan, which was supported by 51 of 63 Republicans.
Opponents including Snyder had expressed concerns that the cuts would create budget problems in the future and likely result in a reduction in some services.
