INCOME TAX: DEDUCT SELF-EMPLOYMENT TAXES

House Bill 4212

Sponsor: Rep. Steve Vear

Committee: Tax Policy

Complete to 8-15-01

A SUMMARY OF HOUSE BILL 4212 AS INTRODUCED 2-13-01

Under the Income Tax Act, taxpayers determine their taxable income for state income tax purposes by beginning with federal adjusted gross income and then making a number of additions and deductions. The act requires the taxpayer to add taxes on or measured by income to the extent they were deducted in arriving at adjusted gross income. House Bill 4212 would specify that this would not apply to self-employment taxes paid for tax years beginning after December 31, 2000.

MCL 206.30

 

Analyst: C. Couch

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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.