Snyder, Republican Lawmakers Disagree on Federal Tax Change Fix

The Legislature is once again at odds with Gov. Rick Snyder.

Michigan state capitol building

Photo of the Michigan State Capitol building.

Michigan House Republicans

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.

Author

  • Cheyna Roth is the co-host and creator of WDET's state politics podcast, MichMash. She has been an audio journalist for almost a decade, covering major events like presidential elections, college scandals, the Michigan Legislature and more, appearing on NPR and across Michigan public radio stations. Cheyna is also a senior producer and podcast host for Slate.com, having produced and hosted shows like Political Gabfest, The Waves, and What Next TBD. Also an author, Cheyna has written two true crime books and her written work has appeared in Broadly, Slate, and MLive, among others.