Michigan

Poor Families in Michigan Are Hit Harder by the Income Tax Than Those in Other States

 

Michigan’s 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.	10th lowest
For single-parent families of three: $9,000.	6th lowest (tie)
Michigan’s 1999 income tax on working-poor and near-poor families:
For families of four with incomes at the poverty line ($17,028): $230.	10th highest
For families of three with incomes at the poverty line ($13,290): $189.	8th highest
For families of three with minimum-wage earnings ($10,712): $75.	11th highest
For families of four with incomes at 125% of the poverty line ($21,285): $417.	11th highest
For families of three with incomes at 125% of the poverty line ($16,613): $335.	10th highest
Michigan has consistently taxed families with incomes below the poverty line. Michigan’s 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, Michigan’s tax threshold is 69 percent of the poverty line.