GOP-Led Michigan Senate Passes $2 Billion Tax Cut For Big CorporationsSenate Dems Unanimously Oppose Corporate Giveaway, Call For Middle-Class, Seniors Tax Cuts In Governor Whitmer’s Budget

GOP-Led Michigan Senate Passes $2 Billion Tax Cut For Big Corporations

By Main Street Sentinel Staff

Michigan Senate Republicans approved a $2 billion dollar tax cut proposal that would lower corporate income tax rates while providing comparatively little tax relief for senior citizens and children. 

All Senate Democrats opposed the measure, arguing the plan mostly benefits large corporations while shifting the burden to individuals and small business owners.

“Small businesses that have truly struggled during the pandemic would virtually get nothing under this proposal,” Senate Minority Leader Jim Ananich, D-Flint told Bridge Michigan. “Meanwhile, this bill allows the richest, the most profitable corporations, in other words, big campaign donors to enjoy a break that is six times larger.”

Records show the tax burden has swung to individuals since 2011, when Republican Governor Rick Snyder established a flat corporate tax rate of 6 percent.

Senate Democrats expressed support for Governor Whitmer’s budget, which would lower taxes for older Michiganders by phasing out the “pension tax”—a tiered system applying a 4.25 percent income tax on pensions depending on when the taxpayer is born—and undo a 2011 cut to the Earned Income Tax Credit for working families.

“We can start with making things right again,” says Whitmer spokesperson Bobby Leddy, “by eliminating the retirement tax to give seniors a much-needed break and cutting taxes for working families.”