For Immediate Release
March 1, 2022
Contact:
Alex Rossman
arossman@mlpp.org
517-775-9053
House votes to pass inequitable tax cut, threatens billions in cuts to state budget
Broad tax cuts jeopardize Michigan EITC increase, targeted school funding, supports for residents with low incomes, other budget priorities
LANSING—The Michigan League for Public Policy continued to raise major concerns with Senate Bill 768, a proposal to significantly cut the personal income tax rate among other tax changes that passed the full House today.
“After previous bad and imbalanced tax breaks, tight to downright brutal budgets, and years of disinvestment, not to mention an ongoing pandemic that is worsening existing deep disparities, current Michigan policymakers have an opportunity to make historic investments and lay the foundation for a brighter future for everyone,” said Rachel Richards, Fiscal Policy Director for the Michigan League for Public Policy. “But our state is at risk of squandering that opportunity instead of seizing it. Passing a widespread unsustainable tax cut would take billions of dollars away from the state budget immediately and make it harder to invest in Michigan’s future.”
As the League’s recent budget analysis and column note, the governor’s budget includes a number of proposals to improve equity in the state, including increasing the Michigan Earned Income Tax Credit (EITC), making major investments to support students and schools with the greatest needs, and improving housing access, healthcare, assistance programs and other support for struggling families.
“The League’s 2023 budget priorities continue to focus on ways to improve economic security and racial equity for all Michiganders, and these proposals all hinge on adequate revenue and strategic investment,” Richards said. “We need smart investments in the things Michigan residents, communities and businesses rely on–a strong K-12 education system, affordable housing, clean water, safe roads and more. The state budget has the potential to reduce disparities and bridge political divides, especially with our current one-time surplus and federal aid, but a broad tax cut to drastically reduce state revenue will negatively affect our state’s ability to provide for its residents for years to come.”
According to analysis by the nonpartisan House Fiscal Agency, SB 768 would reduce available revenue for the budget negotiations by $3.1 billion in the 2023 state budget and cost the state $2.4 billion dollars the following year–and likely each year going forward. These costs will require the state to either cut public services we all rely on or risk losing vital federal aid provided under the American Rescue Plan Act, dollars intended to help struggling workers, families and businesses recover from the economic impacts of the pandemic.
The legislative tax cut proposal passed today includes a universal cut to the personal income tax to lower it to 3.9%, a move that will primarily benefit wealthy residents. Based on data from the national Institute on Taxation and Economic Policy requested by the League, reducing the Michigan personal income tax rate to 3.9% would mean an average tax cut of $12 for the lowest 20% (less than $23,000) of earners and $92 for the middle 20% ($41,000-$70,000) of Michigan workers. At the same 3.9% rate, the average tax cut for the top 1% (making $539,000 or more) of Michigan earners is $4,901. The analysis also found that 69% of the tax cuts will go to the wealthiest 20%, and only 31% of the benefits flow to the bottom 80% of Michigan workers.
An infographic from the League notes that based on these estimates, the personal income tax break will give the state’s lowest 20% of earners enough money to buy one pizza and the middle 20% of earners enough to throw a pizza party, while the state’s wealthiest 1% will get enough for a round-trip flight to Italy, where pizza was invented.
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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
