Poor Families in Michigan Are Hit Harder by the Income Tax Than Those in Other States
Michigans 1999 income tax threshold the income level at which families begin paying income tax:
Ranking among 42 states with income taxes
For two-parent families of four: $11,800.
For single-parent families of three: $9,000.
6th lowest (tie)
Michigans 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $230.
For families of three with incomes at the poverty line ($13,290): $189.
For families of three with minimum-wage earnings ($10,712): $75.
For families of four with incomes at 125% of the poverty line ($21,285): $417.
For families of three with incomes at 125% of the poverty line ($16,613): $335.
Michigan has consistently taxed families with incomes below the poverty line.
Michigans tax threshold for families of four increased during the 1990s, but a substantial gap remains between the threshold and the poverty line.
In 1991, a family of four owed tax when its income exceeded 60 percent of the poverty line. For 1999, Michigans tax threshold is 69 percent of the poverty line.