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Michigan Legislature Gives OK To Tax Cuts; Gov. Whitmer Opposes

LANSING, Mich. (AP) — The Republican-led Legislature on Thursday gave final approval to a veto-destined bill that would cut Michigan's income tax, expand tax exemptions for older people and largely restore a per-child tax credit that was eliminated a decade ago.

Gov. Gretchen Whitmer, a Democrat seeking reelection, has said the GOP-written package of tax cuts is unsustainable and would lead to spending cuts while the next budget is negotiated in the coming months. She has proposed more targeted tax breaks for retirees and lower-income workers as the state runs a multibillion-dollar surplus.

Senate Republicans, who sent the legislation to the governor on a party-line 22-15 vote, have said tax cuts should be broad and significant because everyone is facing high inflation. Democrats have said reducing the income tax would benefit the wealthy more than those who make less.

The measure would cut the income tax to 3.9% from 4.25%, lower the age for filers to exempt up to $20,000 individually or $40,000 jointly to 62 from 67, allow an additional exemption for retirement income not covered by the standard senior deduction and create a $500 per-child tax credit.

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