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MI House adopts new tax break to deal with fed overhaul

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The state House Thursday adopted legislation to allow Michigan taxpayers to continue to claim the personal income tax exemption.

 

The bill is supposed to make sure Michiganders don’t pay more as a result of the new federal tax law.

Republicans and Democrats voted for the bill.

Republicans want a bigger tax cut. Democrats were glad to get on board with a plan that would distribute a break equally to every taxpayer.

But Democratic state Representative Sherry Gay-Dagnogo said people shouldn’t forget it was the federal tax overhaul that made this necessary.

“Oh, we do a lot of covering up around here – covering up the misguided and ill-informed tax bill handed down by Republicans in Congress.” 

“So that wasn’t tax reform, and this bill today is a tax cleanup bill. Cleanup! And I want the record to reflect that I am not the president’s cleanup woman.”

Republican state Representative Jim Tedder chairs the House Tax Policy Committee. He says negotiations on the final version of a tax package are still happening.

“The governor is an important piece to all of this. He’s the third leg of the stool in terms of getting legislation signed into law. So, I’m respectful and appreciative of that.”

A Senate package would roll back taxes even more than the House plan.