"Finally, the income tax rollback that was thrown in as a sweetener has implications on the budget as well as tax fairness. Under the plan, if General Fund revenues grow by more than the rate of inflation, the rate of the income tax would be reduced. According to the House Fiscal Agency analysis, if these provisions had been in place, the income tax rate for 2016 would drop from 4.25% to about 3.96%, which would reduce revenue by $593 million. Additionally, this allows Michigan’s wealthiest to receive the biggest benefit. Modeling by the Institute on Taxation and Economic Policy shows that without the income tax rollback, Michigan’s lowest income taxpayers receive the best tax benefit under the plan; however, once the income tax rate reductions occur, the plan provides the biggest tax benefit to the top 1% in income."