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…Meanwhile, fiscal experts say a cut to the state’s flat income tax rate as proposed by Republicans will largely benefit those at the upper end of the earnings scale. Among them is Rachel Richards, fiscal policy director at the Michigan League for Public Policy.

“Flat rate taxes do tend to benefit high income earners in the long run,” she previously told the Advance. “In previous legislative cycles, we’ve seen bills that have moved through the legislature that have posed rate cuts to our income tax rates, going from 4.25% to 4%. When we’ve modeled those changes, we see how higher income Michiganders get kind of outsized benefits from those tax rate cuts. So, it provides very little, if any, benefit to cut a flat income tax rate for low to moderate income families, but provides these outsized benefits for high-income earners.”

Read more at Michigan Advance.

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