Michigan League for Human Services: Tax Changes Hit Low-Income Families the Hardest

The tax package adopted by Gov. Rick Snyder and the Legislature last year will begin to take effect in 2012. Michigan’s business taxes will be reduced by $1.6 billion, while individual income taxes will increase by $1.4 billion, when fully implemented in Fiscal Year 13.1 These tax changes make Michigan’s tax structure even more regressive. Low-income families, struggling during these difficult economic times, will be hard hit by these tax changes. This analysis examines the major tax changes, their distributional impact on low-income populations and makes tax policy recommendations.

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