LANSING, Mich. (AP/WOOD) — Gov. Rick Snyder’s administration is proposing legislation so taxpayers can continue claiming Michigan’s personal exemption in the wake of the federal tax overhaul, and also is calling for a large state exemption increase.
According to a Monday afternoon release, the tax changes in Washington could lead to $1.5 billion more paid by taxpayers in Michigan. The governor’s office called it an unintended consequence. It says the federal personal exemption was previously carried over to the state form and because the federal exemption was eliminated, it effectively did away with the exemption at the state level, too.
The plan was first unveiled by Lt. Gov. Brian Calley, who is running for governor. Calley says the “simplest, most fair answer” to protect people is to increase Michigan’s $4,000 personal exemption to $4,500 by 2021.>>PDF: Michigan tax reform details
He told The Associated Press that Michigan’s personal exemption should be raised to address other issues such as the elimination of deductions for moving expenses.24 Hour News 8 political reporter Rick Albin will be speaking with Calley about the plan Tuesday to get further details about how it could affect you.