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.