Trenton — Gov. Gretchen Whitmer and a bipartisan group of lawmakers crowded into a Downriver diner Wednesday morning to celebrate a new law that next year will exempt tips, certain overtime pay and Social Security income from the state’s 4.25% income tax.

The elimination of state income taxes on tips and overtime pay is intended to be paired with a new federal law that President Donald Trump signed in July — fulfilling a campaign promise — which exempts the income from federal taxes, with some limitations.

The Legislature approved the new tax exemption last week, and Whitmer signed it into law on Tuesday, along with scores of other bills tied to the passage of a new budget to fund state government through next September.

Eliminating state income taxes on tips, overtime and Social Sec

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