Michigan Governor Rick Snyder will sign tax reform bill Wednesday

Posted on Wed, May 25, 2011 : 6:59 a.m.

Update: The bills were signed this afternoon, and the new tax law takes effect Jan. 1.

Gov. Rick Snyder this afternoon will make official a Michigan budget that scraps a controversial business tax but then created controversy over taxing pensions and cutting school funding.

Republican Rick Snyder, debates Democrat Virg Bernero at the Detroit Public Broadcast studio in Wixom, Mich., Sunday, Oct. 10, 2010. A new poll released Sunday shows Snyder with a 20-point lead just three weeks before the Nov. 2 election. (AP Photo/Mandi Wright, Pool)

Snyder will sign the bill at 12:20 in the State Capitol in Lansing, according to his staff.

Snyder unveiled the plans in the months after he took office on Jan. 1, and they narrowly passed both the state House of Representatives and Senate.

The tax reform eliminates the Michigan Business Tax, cuts exemptions for individuals, and eliminates many credits, including the Earned Income Tax credit for low-income wage-earners and donations to community foundations.

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