A compromise that would allow older seniors to keep their tax breaks on retirement income likely will lead to deeper spending cuts and other changes in the next Michigan state budget.

A revised tax proposal detailed this week by Republican Gov. Rick Snyder would scale back or eliminate homestead property tax credits for many state residents. And Republican state lawmakers Thursday continued to propose further possible cuts in their initial budget plans for the fiscal year that starts in October.

Republican lawmakers are weighing deeper cuts than originally proposed by Snyder in areas including prisons, community colleges and many other programs. Some of those proposals likely would have been made anyway, but they take on new urgency in the wake of recent revisions to Republican tax proposals.

Filed Under : Spending Cuts