Michigan GOP, Gov. Rick Snyder have raised taxes on most residents

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That’s not likely to console a taxpaying couple making $55,000 who will lose their homestead credit, deductions for their two kids and will pay a higher tax rate in the future than under the old tax law. That’s hardly a unique couple and in 2013 their tax bill will be $739 higher, according to the House Fiscal Agency…

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A couple with three children making $110,000, for example, will absorb a tax hit in 2013 of $190, $549 less than the aforementioned couple making half as much.

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Or take a retired couple born after 1952 with $53,000 in income and a $4,000 property tax bill. Next year they lose their entire homestead credit and will pay income tax on every dime of their pension. It adds up to a $3,130 tax hit.

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Next door a couple, in which the older spouse was born before 1953 but after 1945, also has $48,000 in pension income. And $27,000 in Social Security. They’ll lose some homestead credit as well, but the income tax will apply to only $8,000 of their pension. That’s because the first $40,000 is exempted for their year-of-birth group. Their tax increase is $590…

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But consider the financial cost Michigan’s new tax code will have on a married couple with two children making $34,400. With the loss of earned income tax credit, it’s $396.