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    October 7, 1976

    Proposal D — The Graduated Income Tax

    STATE BALLOT ISSUES – PROPOSAL D
    THE GRADUATED INCOME TAX

    Council Comments No. 890, October 7, 1976

    Proposal D on the November 2 ballot is a proposed constitutional amendment that would eliminate the present constitutional prohibition against graduated income taxes, require a graduated state income tax in 1977, and beginning in 1978 authorize the legislature to impose either a graduated or flat rate income tax. The proposed amendment to Article IX, Section 7 of the Michigan Constitution, which was placed on the ballot by initiative petition would:

    • remove the present constitutional prohibition against graduated state or local income taxes;
    • require that for calendar 1977 the legislature impose a graduated income tax at a maximum rate of 3.9 percent on the first $20,000 of the taxable income of individuals after allowing personal exemptions of at least $1,500 for each taxpayer and dependent and require that the rate on taxable incomes over $20,000 be increased to the rate needed to make up for the revenue loss. It is estimated that the rate on taxable income in excess of $20,000 would be 8.5 – 9.0 percent;
    • establish the present statutory $1,500 personal exemption as a constitutional minimum exemption and authorize the legislature to allow other exemptions, credits and deductions;
    • authorize the legislature to impose after January 1, 1978, either a graduated or a flat rate state personal income tax;
    • permit the legislature to impose a graduated corporate income tax; and
    • permit the legislature to authorize graduated local income taxes.

    Proposal D — The Graduated Income Tax

    STATE BALLOT ISSUES – PROPOSAL D
    THE GRADUATED INCOME TAX

    Council Comments No. 890, October 7, 1976

    Proposal D on the November 2 ballot is a proposed constitutional amendment that would eliminate the present constitutional prohibition against graduated income taxes, require a graduated state income tax in 1977, and beginning in 1978 authorize the legislature to impose either a graduated or flat rate income tax. The proposed amendment to Article IX, Section 7 of the Michigan Constitution, which was placed on the ballot by initiative petition would:

    • remove the present constitutional prohibition against graduated state or local income taxes;
    • require that for calendar 1977 the legislature impose a graduated income tax at a maximum rate of 3.9 percent on the first $20,000 of the taxable income of individuals after allowing personal exemptions of at least $1,500 for each taxpayer and dependent and require that the rate on taxable incomes over $20,000 be increased to the rate needed to make up for the revenue loss. It is estimated that the rate on taxable income in excess of $20,000 would be 8.5 – 9.0 percent;
    • establish the present statutory $1,500 personal exemption as a constitutional minimum exemption and authorize the legislature to allow other exemptions, credits and deductions;
    • authorize the legislature to impose after January 1, 1978, either a graduated or a flat rate state personal income tax;
    • permit the legislature to impose a graduated corporate income tax; and
    • permit the legislature to authorize graduated local income taxes.
  • Permission to reprint this blog post in whole or in part is hereby granted, provided that the Citizens Research Council of Michigan is properly cited.

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  • Stay informed of new research published and other Citizens Research Council news.


    By submitting this form, you are consenting to receive marketing emails from: Citizens Research Council of Michigan. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

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