HB 4001

Reduce state personal income tax rate

To cut the state income tax from the current 4.25 percent to 4.05 percent over two years. And then gradually reduce the rate by a quarter of a percentage point annually till it reaches 3.9% (if lawmakers keep $1 billion in the state’s rainy day fund). Note: 3.9% is the rate taxpayers were promised it would roll back down to when it was raised to 4.35% in 2007 by Gov. Granholm.