Economist says US tax law won't cause state taxes to rise

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LANSING, Mich. (AP) (12/29/17) - A Michigan economist who previously worked in state government says the new federal tax law will not lead to an increase in state income taxes.

Patrick Anderson wrote a letter to state Treasurer Nick Khouri Friday urging him to adopt his interpretation. Gov. Rick Snyder has said the tax overhaul will cause residents' state taxes to rise, but he's committed to making any necessary changes to prevent that.

Anderson says he reads the federal law to not eliminate a $4,050 personal exemption, but rather to set it to zero for a number of years. The law is explicit, he says, in saying the reduction of the exemption shouldn't be taken into account for other purposes.

Michigan lets people claim a $4,000 exemption for each exemption taken on their federal return.

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