The state treasurer says caution should be the watchword as the Legislature develops plans to deal with a glitch in the federal tax overhaul. If they don’t that glitch could cost Michigan taxpayers more in state income taxes.
Governor Rick Snyder has proposed guaranteeing taxpayers can continue to claim the personal exemption. He even wants a modest increase, so it amounts to a small tax cut.
Treasurer Nick Khouri appeared on the Michigan Public Television show “Off The Record.” He says bigger returns to taxpayers require decisions to cut spending or find new revenue.
“You can’t talk about taxes unless you talk about spending. You can’t talk about spending unless you talk about taxes.”
Khouri also says the state has to start preparing for the next recession. The state is now nine years into an economic recovery, and he says that won’t last forever.