Pontiac Times

State Representative Donni Steele, a Republican from Orion Township, is advocating for a Republican plan that would immediately lower the state income tax rate to 3.9%. The plan aims to assist families who are struggling with the high cost of living in Michigan.

Steele emphasized the need for tax relief, stating, "Higher incomes, less taxes should be the vision for Michigan." He highlighted the financial challenges faced by many families, such as having to choose between meals or not being able to afford adequate heating. Steele believes that the middle class needs their hard-earned tax dollars back in their pockets rather than subsidies for electric vehicles.

The Republican plan, known as House Bill 5399, seeks to fulfill a promise made during Governor Jennifer Granholm's administration in 2007. It would restore the income tax rate to its original level of 3.9% after being raised during that time. However, the commitment to lower taxes was never met, and under Democratic leadership, the tax rate increased to 4.25% in 2024.

Steele expressed frustration with the broken promise, stating, "I taught my kids to keep their promises; now the state needs a lesson in integrity." He highlighted the fact that the income tax rate was supposed to decrease in 2015 but has remained unchanged. Steele argued that with the state experiencing a significant budget surplus, it is time to return the excess funds to the taxpayers.

Supporting this argument, data from the Mackinac Center for Public Policy reveals that states with lower income taxes have seen job numbers rise by 5.7% above pre-pandemic levels. In contrast, states with higher income taxes have only experienced a 2% increase in job numbers. Michigan lags even further behind, with job numbers still 0.6% below pre-pandemic levels.

House Bill 5399, however, faces an uncertain future as it has been referred to the historically unproductive House Government Operations Committee. Despite this, Rep. Steele remains committed to advocating for lower taxes and tax relief for Michigan families.

In conclusion, State Representative Donni Steele is pushing for immediate action on a Republican plan to lower the state income tax rate to 3.9%. Steele argues that Michigan families need tax relief, and the state's budget surplus should be returned to the taxpayers. The bill aims to fulfill a promise made in 2007 to lower the tax rate, which was never fulfilled. Data also suggests that states with lower income taxes have seen better job growth. House Bill 5399, however, faces challenges as it awaits discussion in the House Government Operations Committee.