State Rep. Ken Borton and the Michigan House of Representatives today approved a tax relief plan to reduce the burden on seniors and working families across Michigan.

Senate Bill 768, a $2.5 billion tax relief plan, would reduce Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working families. The plan would also allow parents to receive a child tax credit of up to $500 per dependent under the age of 19.

“I’m thrilled to cast a resounding yes vote for tax relief,” said Borton, R-Gaylord. “Cutting taxes for the people of Northern Michigan has been a priority for me since day one — and even before I took office. Our plan will reduce taxes across the board, saving money for seniors and 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.

After earning bipartisan support in the House, SB 768 now proceeds to the Senate, where passage is expected in the near future.

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