WeVote
Log In

Bill

Bill

SB 151

Individual income tax: rate; rollback of rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

2025-2026 Regular Session Introduced by Joe Bellino and 6 co-sponsors

Michigan bill to reduce individual income tax rate to 3.9%, cutting state revenue and affecting public service funding capacity.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
#individualincometax:rate #stateagencies(existing):treasury
0
WeVote Research Nonpartisan
Bill Summary · SB 151

Legislative bill overview

SB 151 proposes to reduce Michigan's individual income tax rate from its current level to 3.9%, representing a rollback of the tax rate. The bill amends the Michigan Tax Code (MCL 206.51) that governs income tax rates.

Why is this important

Income tax is a major revenue source for state government, funding education, infrastructure, healthcare, and other services. Changes to the rate directly affect state budget capacity and household disposable income, making this a consequential fiscal policy decision with tradeoffs between tax relief and public funding.

Potential points of contention

  • Revenue impact: Reducing the income tax rate decreases state revenue, requiring either budget cuts to services, increases to other taxes, or reallocation of existing funds
  • Fairness and distribution: Tax rate changes affect different income groups differently; analysis needed on whether this provides proportional benefit across wage levels
  • State service adequacy: Critics may argue lower revenue compromises funding for education, infrastructure, and social programs, while supporters argue it stimulates economic growth that offsets revenue loss

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

Sign in to ask a question.