More Money for Michigan Families
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April 17 was the last day Michigan residents had to file their taxes under an old, outdated complicated tax code that had not been updated in more than 30 years.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.
Right now, Michigan residents are paying lower taxes because each paycheck they earn has more money in it.
Employers have implemented the new, lower rates, meaning workers are taking more home in each paycheck.
This is a big deal for the thousands of families who are living paycheck-to-paycheck. The extra money will make a big difference in their lives and I have heard from constituents about everything they will be able to do with it, including buying new clothes for their children.
There are other benefits of tax reform that are also happening.
Because of tax reform, companies across Michigan have paid out bonuses to their employees.
Quad Graphics, the printing company with employees and facilities in Midland and Greenville, paid bonuses into the retirement accounts of its workers.
Numerous other companies in Michigan have also paid out bonuses and given raises, lifting the pay of workers in low-wage jobs including cashiers and bank tellers.
Tax reform put money directly into the pockets of these workers, boosting their take-home pay and giving them more confidence in the economy.
Tax reform is also bringing manufacturing jobs back to America.
In one specific instance for Michigan, Fiat Chrysler announced in January that it would move production of Ram Trucks from Mexico to Macomb County. According to the company, the move was “made possible in part” by tax reform.
Small business owners are also feeling good about the direction of the economy and they are offering more jobs and opportunities. Small business owners who file quarterly taxes this year will be paying lower rates, helping them invest and grow their business.
There is also more good news to come next year when folks file their income taxes.
The standard deduction will be doubled to $24,000.
The standard deduction is used by 95 percent of families and raising it will make it easier for families to file their taxes.
The child tax credit will be doubled to $2,000 per child.
This credit was claimed by more than 43,000 families in our district and this money will give parents a little extra to provide for their kids.
Tax reform simply means that Michiganders will keep more of their hard-earned money to provide for their families and invest in their communities. That is always a good thing.
Congressman John Moolenaar, R-Midland, represents Michigan’s Fourth Congressional District which is made up of Clare, Clinton, Gladwin, Gratiot, Isabella, Mecosta, Midland, Missaukee, Ogemaw, Osceola, Roscommon, Shiawassee, and Wexford counties, and parts of Montcalm and Saginaw counties.