Democratic Caucuses Announces Joint Proposal

Liz Gullett

Mar 31, 2017

This week, members of the House and Senate Democratic caucuses announced legislation to cut taxes for many Michigan residents. The members said their plan would help fix three critical problems – the broken tax system, crumbling roads, and underfunded school.

According to their press release, the bottom 80% of households contribute 9.2% – 9.5% of their income to state and local taxes, while those in the top 1% contribute only 5.9%. Data from the Department of Treasury shows that 94% of families would receive a tax cut under the Democratic plan to establish a graduated income tax. Currently eight states have a flat income tax and thirty-three states have a graduated income tax. The nonpartisan House Fiscal Agency estimates the plan would generate $870 million in new revenue, which could be used for schools and roads. “The proposal is in line with the call the Democratic caucuses have made since the start of the Snyder Administration; tax breaks for the middle class. While it’s unlikely to pass the Republican controlled legislature, it allows them to show their voters in 2018 that they kept their promise to fight for the middle class,” explained Matt Sowash of MLC.

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