State Rep. Diana Farrington, who serves on the House Committee on Tax Policy, today voted in support of a plan to reduce taxes for Michigan families while expanding tax savings for seniors.
Farrington and the committee today approved House Bill 5838, which would provide $1.7 billion in annual tax relief.
“The pandemic and inflated prices have steered seniors and working families into dire financial straits,” said Farrington, R-Utica. “Lessening the impact of state taxes will help everyone in Michigan chart a better course and navigate the unpredictable economic waters.”
House Bill 5838 would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working families.
In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption. This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.
HB 5838 now advances to the entire House of Representatives for consideration.
With overwhelming bipartisan support, the Michigan House of Representatives today approved state Rep. Diana Farrington’s plan to teach Michigan students how to manage their personal finances.
State Rep. Diana Farrington, chair of the House Financial Services Committee, today celebrated Michigan students who will learn critical knowledge and skills in a personal finance course that will be required across the state under her plan that was signed into law this afternoon.
Rep. Farrington talks about final House passage Tuesday of her HB Bill 5190, which would require public high school graduates to complete a half-credit course in personal finance. At the discretion of the school board, the personal finance requirement could fulfill a half credit of the four-credit mathematics requirement, the two-credit language other than English […]