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HB 4592

Individual income tax: deductions; deduction for all compensation earned by a taxpayer 17 years of age or younger; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

2025-2026 Regular Session Introduced by Joe Aragona and 9 co-sponsors

Michigan bill eliminates state income tax on all wages earned by workers aged 17 and under, reducing tax revenue with no identified funding offset.

bill electronically reproduced 06/10/2025
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Bill Summary · HB 4592

Legislative bill overview

HB 4592 would amend Michigan's income tax code to allow a complete deduction from state income tax for all compensation earned by taxpayers aged 17 and younger. This means minors who work would pay no state income tax on their wages, regardless of income level.

Why is this important

This directly affects the estimated 300,000+ Michigan teenagers in the workforce by increasing their take-home pay. It also has revenue implications for the state budget, as it eliminates income tax collection from this demographic entirely. The policy reflects a philosophical choice about how to incentivize youth employment versus maintaining tax revenue.

Potential points of contention

  • Revenue impact: Removing an income tax bracket eliminates state tax revenue with no identified offset or funding source, raising questions about how other programs would be funded
  • Equity concerns: High-earning minors (from wealthy families) would receive larger absolute tax benefits than lower-earning minors, potentially widening income disparity
  • Labor market effects: Critics might argue this subsidizes employers by reducing labor costs rather than genuinely helping young workers, while supporters claim it encourages youth employment and work ethic
  • Administrative complexity: Determining age eligibility at tax time and preventing fraud could create compliance challenges for tax filers and administrators

Compiled from official sources — confirm details with the bill’s official record.

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