State Rep. Tom Cochran (D-Mason) is the sponsor of a “tax equality” proposal that could save working families up to $600 a year.
Michigan is one of just eight states that have a flat tax, meaning that every taxpayer in the state pays the same income tax rate, currently 4.25 percent. In contrast, the federal income tax is graduated, meaning that lower income taxpayers pay a smaller tax rate than high-income taxpayers. As a result, a low-wage earner in Michigan pays a larger percent of their disposable income in state taxes than a high-wage earner.
The proposal Cochran advances would change that, and would provide a substantial tax savings to most Michigan taxpayers. A family with an income of $60,000 a year stands to save about $600 a year.“
This legislation would provide tax relief to families with the highest tax burden, while asking the wealthiest in our state to contribute the same share of their income as everyone else,” said Cochran.
You can see how the tax plan would affect your own tax situation by visiting www.MITaxEquality.com.
“The tax equality website will allow every Michigander to find out what tax equality means for them,” said Cochran. “House Republicans certainly didn’t want residents to know what their 2011 tax reforms meant for them when they passed the largest tax increase on Michigan families and retirees in our state’s history.”