MI HB4436

Establishes a progressive graduated income tax system beginning January 1, 2018, replacing the flat tax rate with brackets ranging from 3.0% on the first $20,000 of income to 10.0% on income over $1,000,000 for single filers.

Creates separate tax bracket thresholds for joint returns, with rates ranging from 3.0% on the first $40,000 to 10.0% on income over $1,000,000.

Requires the Department of Treasury to adjust income tax bracket amounts annually beginning in 2019 based on the Midwest Employment Cost Index for the East North Central Division, rounded to the nearest $100.

Maintains existing distributions of income tax revenue, including 1.012% of gross collections to the state school aid fund and 3.5% of farmland tax credits to the agricultural preservation fund.

Makes the bill contingent upon passage of House Joint Resolution K, which would amend the state constitution to authorize a progressive income tax system.