Impact of Income-Tax Breaks

May 08, 2002 1 min read

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

In millions

Indexed personal exemption -$67.6
Private-pension deductions -15.6
Dividend and interest deductions -5.6
Child exemptions -13.6
Special exemptions -15.8
Dependent exemptions -7.1
College-savings-account deductions -1.9
Federal IRA changes -27.0
Federal student-loan deductions -0.8
Total -155.0

SOURCE: “A Review and Analysis of Michigan Tax Policies Impacting K-12 Finances” (Executive Summary), Douglas C. Drake, 2002. (Requires Adobe’s Acrobat Reader.)