AFP-MI applauds proposal to reduce MI income tax rate

Jan 29, 2014 by AFP

Senate Committee on Finance

The Honorable Jack Brandenburg


Dear Chairman Brandenburg and distinguished members of the Committee:

On behalf of the more than 88,000 activists of Americans for Prosperity-Michigan, I am writing in support of Senate Bill 402, which would phase-in a reduction in the individual income tax rate from 4.25% to 3.9%. This legislation represents a good first step toward delivering meaningful, long-term tax relief to working Michigan citizens.

Rewarding Michigan citizens for working hard by allowing them to keep more of the money they earn will create an atmosphere of opportunity. Conversely, punishing those who work by taking more of the fruits of their labor establishes an environment that encourages dependency.

Governors and state lawmakers around the country have acknowledged the importance of reducing tax burdens in order to make their states more attractive places for people to live, work and do business. They are part of a growing consensus that taxes discourage economic growth and inhibit a state’s ability to be competitive. Taxes on income are some of the worst and remain a key factor for those citizens who choose to “vote with their feet.”

According to a report published by the American Legislative Exchange Council, last year 18 states significantly reduced their tax burden. This includes the nearby states of Indiana and Wisconsin with which Michigan must remain competitive in order to continue to turn our state’s economy around.

I urge you to support SB 402 as a great start to a broader conversation about reducing Michigan’s tax on work. Please don’t hesitate to contact me directly to discuss this issue or legislation further, (517) 853-9073 or


Scott Hagerstrom

State Director

Americans for Prosperity-Michigan