The Legislature is once again at odds with the governor — this time over what to do about the new federal tax law.
Republican legislative leaders and Gov. Rick Snyder agree on two things: The new federal tax law means an increase in Michigan taxes, and something needs to be done to fix that.
But where they disagree is on what to do.
The governor wants to essentially find a way to make the federal tax impact neutral at first, so Michigan taxes would stay the same.
But state House Speaker Tom Leonard (R-DeWitt) isn’t on board with that plan.
Leonard wants to find a way to cut taxes even further right now, rather than keep them the same.
“We’ve got to really hammer out the details and figure out which direction we want to head as a caucus,” said Leonard. “But certainly I would like to see us go even further.”
Leonard says he expects to release a plan soon.
Democrats in the House are on board with the governor’s proposal and have already introduced a similar bill to make it law. However, their plan would increase the exemption earlier.
“We don’t think that Michigan’s working families should be burdening the costs of a tax cut for corporations,” said bill sponsor state Rep. Darrin Camilleri (D-Brownstown Twp.). “So if we don’t do something now – which I’m glad the governor agrees with us – then we’re going to see those taxes go up. And that’s not fair.”
Lawmakers in the state Senate have also unveiled a plan. It restores a bigger exemption than Snyder wants. Whether the House’s plan goes even further than that remains to be seen.