By Lingling Xu
Grand Ledge-Michigan Income Tax Act will affect the first returns, which is due April 2013. The exemptions for children and seniors are no longer exist anymore.
“ No one wants to pay more,” said Carolyn Hough, a mother of two kids who works in About the Home, a furnisher and design store in Grand Ledge. “ It does not impact my life that much, but I am just not happy to pay more tax”
Governor Rick Snyder signed legislation amending the Michigan Income Tax Act 21 months ago, according to the Department of Treasury. The new Tax Act sets the income tax for 2013 and thereafter at 4.25 percent, and contributes money for offsest the $1.6 billion business tax cut.
“Yes, we have to pay, it is a big one to pay,” said Kim Tischler, a mother lives in Grand Ledge who has to pay for three children’s tuition and living fee, think the cancellation of exemptions for children is big part of money for her to pay.
After the new Michigan Tax Act, a married couple with two children who earned $55,000 annually will pay $1,702, which is $739 more than last year. If you earned $250,000 annually, you will pay $ 10,625, which is $989 more than last year.
Meanwhile, many refundable credits are reduced this year, according to Department of Treasury. The Earned Income Tax Credit is reduced from 20 percent to 6 percent, it means you will receive less credit from paying taxes than last year; even you may pay more taxes in this year. Only households with resources less than $50,000, and a taxable value less than $135,000 will receive the Earned Income Tax Credit, according to the Tax Change Summaries from Michigan Taxes, Department of Treasury.
Kathleen Corner, a sales person at Meijer in Grand Ledge, said the tax increase only affects her life minimally, because she does not have to raise her children anymore because they already have their own jobs.
Some people do not understand and are not willing to pay more for the income taxes. Higher taxes means less money for daily expenses.
Sara Wurfel, who works in the Treasury Department, said the tax changes are better for the whole state budget. According to the Grand Ledge council meeting, the Grand Ledge city is going to amend the Annual Budget for the Fiscal Year ending June 30. So the new taxes return may help the Grand Ledge to increase their budget.