Governor Signs Tax Cut! Tax Cuts to benefit Seniors, Disabled & Caregiver Families

Contact: John Truscott (517) 335-6397

At the Bryant Senior Drop-in Center in Dearborn, Governor John Engler today signed into law House Bill 5391.

"This tax cut bill benefits Michigan seniors, the disabled and their caregivers," said Governor Engler at the bill signing ceremony at the Bryant Senior Drop-in Center in Dearborn. "It will save taxpayers $26.1 million in the 1999-2000 Fiscal Year and $36.7 million in the 2000-2001 Fiscal Year."

The Governor noted that the bill provides both greater tax relief and flexibility for the state's most vulnerable citizens and their families.

House Bill 5391, sponsored by State Representative Gary Woronchak (R- Dearborn):

  • Increases the special exemption for seniors from $900 to $1,800;

  • Provides an $1,800 exemption for disabled, deaf, blind, paraplegic, quadriplegic, or hemiplegic taxpayers. These taxpayers previously received a $900 exemption unless they were both deaf and disabled;
  • Allows taxpayers to claim the above special exemptions for their dependents if they provide more than 50% of the financial assistance to that dependent and can claim a similar exemption on their Federal return.
  • For all Michigan taxpayers, increases special exemption from $900 to $1,800 if 50 percent or more of their Federal adjusted gross income is unemployment income compensation;
  • For all Michigan taxpayers, allows dependents with Federal adjusted gross incomes of $1,500 or more to now claim an exemption of $1,500 - an increase of $500.
  • Allows these special exemptions to be increased for changes in the cost-of-living.
"This is another way we are looking out for seniors and disabled Dearborn residents," added State Representative Woronchak. "Combined with our senior prescription package, it shows that the Legislature is helping out those who need it most."

(Editor's Note: An audio feed of State Representative Woronchak commenting on his tax cut bill is available on the House Republican audio newsline at (517) 373-0111 for the next 24 hours. It is also available at its web site at