State Rep. Ken Borton, who serves on the House Appropriations Committee, today announced his support for a plan to reduce taxes for working families and expand tax savings for seniors.

House Bill 5838, which would provide $1.7 billion in annual tax relief, today received approval from the House Tax Policy Committee, during a joint hearing with the Appropriations Committee.

“With inflation sweeping our nation, the bare necessities are more expensive everywhere you look in Northern Michigan,” said Borton, R-Gaylord. “Working families and seniors with limited income feel this crisis worse than anyone. Our tax cut plan will help people breathe a little easier as they keep more of what they’ve earned.”

HB 5838 would lower Michigan’s individual income tax rate from 4.25% to 3.9%, reducing the burden on working and retired families across Michigan.

In addition to paying a lower rate, seniors 62 years and older would be able to exempt $20,000 of all their income from the state income tax, or $40,000 for couples filing jointly. Eligibility for this exemption currently begins at age 67. The plan would further enable seniors to deduct retirement income — such as pensions, 401(k) plans and individual retirement accounts — not already included in the first exemption. This additional deduction would also allow up to $20,000 for individual filers and $40,000 for joint filers.

HB 5838 now advances to the entire House of Representatives for consideration.

####