As a father of six, I understand the importance of every dollar in raising a family. That is why I supported tax reform that will let hardworking Michigan families keep more of their own money.
The tax reform legislation, which became law in 2017, represents the first major overhaul of our tax code in more than 30 years. The new law doubled the standard deduction and lowered tax rates across the board. It also doubled the child tax credit to $2,000 and maintained deductions for medical expenses, charitable giving, mortgage interest payments, adoption expenses, and student loan deductions.
Tax reform will also stimulate the economy by giving family owned small businesses a tax break. The new tax rates will take affect when residents pay their 2018 taxes in 2019, but Michigan workers are already seeing benefits. Many employers have given their employees bonuses and pay raises, and utility companies have announced plans to pass on the savings in the form of lower rates for customers. Tax reform is letting Michigan families keep more of their own money and that is always a good thing.
More on Tax Reform
Winter may never leave us in Michigan, but one thing is for sure, the old tax system is gone.
April 17 was the last day Michigan residents had to file their taxes under an old, outdated complicated tax code that had not been updated in more than 30 years.
Now Michiganders can fully enjoy the lower tax rates of 2018, keep more of their own money and plan ahead for filing next year when they will owe the federal government less money.
In fact, some benefits of tax reform are already being seen in Michigan.