State Rep. Timmy Beson and the Michigan House of Representatives today voted to approve a plan to cut taxes for working families and seniors throughout Michigan.

Senate Bill 768 would provide an estimated $2.5 billion in annual tax relief to the people of Michigan. The plan would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working and retired families across Michigan. The plan would also allow parents to receive a child tax credit of up to $500 per dependent under the age of 19.

In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all their income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption. This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.

“Because of the pandemic, people in Bay County and around the state are still struggling,” said Beson, R-Bangor Township. “Now, with inflation, everything costs more — so our plan will cut taxes to help. Everyone will get an income tax cut. Families with kids will save even more. Seniors, who worked hard their whole careers, can keep more of their retirement income tax-free.”

After earning bipartisan support in the House, SB 768 now returns to the Senate, where it is expected to pass in the near future.

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