Michigan
Michigan: Who Pays? 7th Edition
January 9, 2024 • By ITEP Staff
Michigan Download PDF All figures and charts show 2024 tax law in Michigan, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly 100 percent of state and local tax revenue collected in Michigan. State and local tax shares of family income Top 20% Income Group […]
Michigan League for Public Policy: News Flash: Michigan Taxes Are Still Upside-Down
October 17, 2018 • By ITEP Staff
While no news is often regarded as good news, in this case, it’s not. Michigan’s tax structure is still highly regressive, and taxes Michiganders with low incomes at a higher rate than Michigan’s wealthiest residents, according to a report by the Institute on Taxation and Economic Policy.
Michigan: Who Pays? 6th Edition
October 17, 2018 • By ITEP Staff
MICHIGAN Read as PDF MICHIGAN STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $17,600 $17,600 to $33,000 $33,000 to $57,100 $57,100 to $95,900 $95,900 to $199,600 $199,600 to $422,100 over $422,100 […]
Tax Cuts 2.0 – Michigan
September 26, 2018 • By ITEP Staff
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. And they falsely claim that making these provisions permanent will benefit […]
Most States Have Raised Gas Taxes in Recent Years
May 22, 2018 • By Carl Davis
An updated version of this blog was published in April 2019. State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
Michigan League for Public Policy: The Looming Danger of Tax Cut Triggers in Michigan
May 15, 2018 • By ITEP Staff
New analysis by the Institute on Taxation and Economic Policy (ITEP) uses current year and two-year forecasts to calculate the impact that a 0.1 or 0.25 rate reduction in the Personal Income Tax (PIT) could have on taxpayers and state revenue. The data shows that any reduction in the PIT actually shifts the tax load further to low-income Michiganders.
Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate
January 26, 2018 • By ITEP Staff
According to modeling by the Institute on Taxation and Economic Policy, in 2019 about 1,400 fewer filers (about 0.4%) will qualify for the credit, resulting in $7 million in fewer federal credits being distributed to the state. By 2027 about 14,500 fewer filers (about 2%) will qualify for the credit, resulting in a loss of $96 million of federal credit value. The same filers who lose their federal EITC will also lose their ability to claim their state EITC, resulting in a loss of additional local economic support.
State Rundown 1/12: Tax Cut Tunnel Vision Threatens to Bore State Budget Holes Even Deeper
January 12, 2018 • By .ITEP Staff
As states continue to sift through wreckage of the federal tax cut bill to try to determine how they will be affected, two things should be clear to everyone: the richest people in every state just got a massive federal tax cut, and federal funding for shared priorities like education and health care is certain to continue to decline. State leaders who care about those priorities should consider asking those wealthy beneficiaries of the federal cuts to pay more to the state in order to minimize the damage of the looming federal funding cuts, but so far policymakers in Idaho,…
Michigan League for Public Policy: The benefits of Deferred Action for Childhood Arrivals (DACA) on immigrants in Michigan
December 20, 2017 • By ITEP Staff
Researchers at the Institute on Taxation and Economic Policy (ITEP) estimate that nationwide, DACA enrollees contribute $2 billion in state and local taxes each year. In Michigan, these young adults contribute $13 million in state and local taxes annually. If federal elected officials fail to pass a replacement to DACA and beneficiaries’ work permits expire, […]
How the Final GOP-Trump Tax Bill Would Affect Michigan Residents’ Federal Taxes
December 16, 2017 • By ITEP Staff
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]
How the House and Senate Tax Bills Would Affect Michigan Residents’ Federal Taxes
December 6, 2017 • By ITEP Staff
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Michigan residents.
How the Revised Senate Tax Bill Would Affect Michigan Residents’ Federal Taxes
November 13, 2017 • By ITEP Staff
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Michigan, 49 percent of the federal tax cuts would go to the richest 5 percent of residents, and 10 percent of households would face a tax increase, once the bill is fully implemented.
How the House Tax Proposal Would Affect Michigan Residents’ Federal Taxes
November 6, 2017 • By ITEP Staff
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate…
Michigan League for Public Policy: Immigrant families in Michigan: A state profile
October 18, 2017 • By ITEP Staff
Michigan immigrants also contribute millions in tax revenue each year, and in doing so help pay for important public programs and infrastructure in the state. In 2015 for example, undocumented immigrants in Michigan paid approximately $86.6 million in state and local taxes. Young undocumented immigrants also contribute their share in taxes. In 2015, DACA-eligible immigrants […]
GOP-Trump Tax Framework Would Provide Richest One Percent in Michigan with 62.5 Percent of the State’s Tax Cuts
October 4, 2017 • By ITEP Staff
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Michigan equally. The richest one percent of Michigan residents would receive 62.5 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $502,500 next year. The framework would provide them an average tax cut of $76,560 in 2018, which would increase their income by an average of 4.7 percent.
In Michigan 38.6 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
August 17, 2017 • By ITEP Staff
A tiny fraction of the Michigan population (0.2 percent) earns more than $1 million annually. But this elite group would receive 38.6 percent of the tax cuts that go to Michigan residents under the tax proposals from the Trump administration. A much larger group, 43.3 percent of the state, earns less than $45,000, but would receive just 4.2 percent of the tax cuts.
Trump Tax Proposals Would Provide Richest One Percent in Michigan with 53.2 Percent of the State’s Tax Cuts
July 20, 2017 • By ITEP Staff
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Michigan would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,621,600 in 2018. They would receive 53.2 percent of the tax cuts that go to Michigan’s residents and would enjoy an average cut of $120,010 in 2018 alone.
Detroit Free Press: Undocumented immigrants in Michigan face uncertain future
October 25, 2016 • By ITEP Staff
“The Institute on Taxation and Economic Policy estimated undocumented immigrants paid about $10.6 billion in state and local taxes in 2010 — about $8 billion of which was accumulated through sales and excise taxes.” Read more
Michigan League for Public Policy: Review tax expenditures to help fix Michigan’s broken revenue stream
May 18, 2016 • By ITEP Staff
“Michigan has a budget problem, and simply put, there just isn’t enough money to go around. Michigan has experienced crisis after crisis—the Great Recession, nearly record-high unemployment, municipal financial emergencies, the city of Detroit’s bankruptcy, the Flint water crisis and the financial struggles of Detroit Public Schools to name a few. In attempting to fix […]
Michigan League for Public Policy: The 2015 roads plan: Helps wealthy and hampers budget
December 18, 2015 • By ITEP Staff
“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 […]
Michigan League for Public Policy: Enough is Enough: Business Tax Cuts Fail to Grow Michigan’s Economy, Hurt Budget
November 2, 2015 • By ITEP Staff
Cutting business taxes has not been an effective way to grow jobs and the Michigan economy as promised. This is particularly true when combined with increased taxes on individuals, disproportionately affecting low- and middle-income people and families. In 2011, the Legislature and governor gave businesses a generous $1.6 billion tax cut by repealing a business […]
Michigan League for Public Policy: Undocumented immigrants: Reform increases their tax contributions
October 21, 2015 • By ITEP Staff
Undocumented immigrants already contribute a significant amount to our state’s tax system. Under President Obama’s 2012 and 2014 executive actions, the amount will increase and could be even more with comprehensive reform. Read full report here
Michigan League for Public Policy: Paving the roads on the backs of the working poor
October 21, 2015 • By ITEP Staff
The House Republican plan to fix Michigan’s roads by eliminating the state Earned Income Tax Credit raises taxes for the second time in five years on workers already struggling to get by on low wages.Eliminating the EITC to pay for roads amounts to robbing poor Peter to pay Paul. The $117 million saved by eliminating […]
Michigan League for Public Policy: Testimony Presented to the House Roads and Economic Development Committee HB 4609 – EITC Elimination
October 21, 2015 • By ITEP Staff
House Bill 4609, which would eliminate the Michigan Earned Income Tax Credit, is a tax hike on 820,000 working families who are raising 1 million children. It punishes working families who are playing by all the rules but still not getting ahead. Read full testimony here
CNBC: Is Your State a Gas Tax Winner–Or Loser?
July 22, 2015 • By ITEP Staff
As states from Connecticut to California scramble to find money to fix crumbling highways, Congress once again is expected this week to put a short-term patch on the nearly insolvent federal highway trust fund. To make up the shortfall, Congress has transferred more than $53 billion from other tax revenue over the past five years, […]
