A new report commissioned by three Michigan education groups provides this breakdown of how several, seemingly minor changes in state and federal income-tax laws have had the cumulative effect of eliminating $155 million that would have been available for Michigan schools in fiscal 2002.
|FY 2002, by Policy|| |
|Indexed personal exemption||-$67.6|
|Dividend and interest deductions||-5.6|
|Federal IRA changes||-27.0|
|Federal student-loan deductions||-0.8|
SOURCE: “A Review and Analysis of Michigan Tax Policies Impacting K-12 Finances” (Executive Summary), Douglas C. Drake, 2002. (Requires Adobe’s Acrobat Reader.)