LANSING – Governor Rick Snyder told reporters Tuesday the revenue estimates have not been released yet and it is too soon to determine if an income tax rollback would be a responsible answer to possible surplus funds.
“Let’s get the facts first and then let’s make sure we’re being fiscally responsible for the long term,” Mr. Snyder said. “Because it’s not just about looking at rollbacks, it’s about long-term solutions for our citizens.”
With an estimated $400 million more in revenue than was projected at the May revenue estimating conference from the 2012-13 fiscal year and $1.3 billion more overall when including the 2013-14 and 2014-15 fiscal years, some legislators – like House Speaker Jase Bolger (R-Marshall) – have suggested using the funds for individual tax relief.
However, Snyder said it is simply too soon to talk specifics, and that includes a plan by Sen. Jack Brandenburg (R-Harrison Township) to provide an income tax rollback of a tenth of a point per year until the state income tax is 3.9 percent.
“I am not going to speculate on that, we don’t even have the revenue forecast yet,” he said of ever supporting the rollback. “What I would say, though, and I think it’s very clear: We’ve come a long way back. We’ve improved dramatically in our economy. But we need to be smart about making decisions. We did do the sales tax on the difference, which I think was good for our citizens in Michigan already.”
Last year Snyder signed into law legislation deducting the value of a trade-in from the sales tax assessed on the purchase price of a motor vehicle, boat or recreational vehicle.
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