Mackinac Center Considers Appeal of Ruling on MI Income Tax Rate
March 8, 2024
Nik Rajkovic / news@whmi.com
The Mackinac Center for Public Policy will likely appeal a Michigan appeals court decision confirming a rollback of the state's income tax back in 2015 was only temporary.
"We have until March 25 to do so. We're reviewing our options and looking at the arguments we can make," said Patrick Wright, vice president for legal affairs at the Mackinac Center.
Wright is convinced the best reading of the law requires a permanent tax cut.
"The 2015 law, essentially said we would lock in the income tax at that 4.05%, unless in the future, revenue once again grew so much, 40% over inflation. Then we would once again say we've got the situation necessary where can afford a permanent income tax. A second income tax would happen in that case, and that would have been permanent."
He argues Michigan didn’t even have an income tax until 1967. Nine other states don’t have an income tax at all.
"The question in this case, assuming we have an income tax, is what's it supposed to be? And did a 2015 Republican Legislature mean to have a permanent tax cut or a one-year tax cut. Just saying the question pretty much answers itself," says Wright.