An opinion from Michigan Attorney General Dana Nessel will likely mean a small income tax Michiganders were to receive starting this year will only be temporary. A 2015 state law mandated an automatic income tax cut from 4.25% to 4.05% if revenues and the general fund hit a certain threshold. However, Nessel told state Treasurer Rachel Eubanks this week because the budget situation is only temporary, it’s clear the Legislature intended that tax reduction to also be temporary. That means the income tax cut would only be for one year, and not permanent. State Senator Aric Nesbitt slammed the opinion, saying Governor Gretchen Whitmer and Nessel have “reached a new low” in denying tax cuts to workers. He says, “I was there in 2015, and it could not have been more clear what the language said or what our intent was.” Joining Nesbitt is blasting Nessel’s opinion was former Governor Rick Snyder, who said the “income tax trigger was intended to be a permanent reduction activated when state government had a large surplus.”
