By BROOKE KANSIER
Capital News Service
LANSING — Michigan is still catching up after the Great Recession crashed the economy — and for most residents, the 2011 rewrite of the state tax code made things worse, Democratic legislators say. Lawmakers recently took aim at tax changes approved by Gov. Rick Snyder that they said shifted the burden from businesses to individuals and harmed mid and low-wage workers. “Most families in our state continue to struggle economically, and the income and equality and disparity between the wealthy and everyone else continues to get ever bigger,” Democratic House Leader Tim Greimel of Oakland County said. “A big part of that is related to the massive tax shift that Republicans in state government orchestrated in 2011.”
Under the 2011 rewrite, multiple tax benefits for middle class and low-income residents were cut or reduced, including significant reductions to a tax credit that helps low-wage workers and their families. A $600 per child tax credit for families was also cut, and a new tax on pensions was added.