Taxing your pension? Will it happen in Michigan?
Fri, 18 Feb 2011 23:22:38 GMT —
MidMichigan retirees are sounding off about Gov. Rick Snyder TMs proposal to tax pensions as a way to bring in more revenue to state government. Snyder outlined the proposal in his budget presentation before joint State House and Senate committees Thursday morning, but news of his interest in pension taxation quickly circulated around Detroit media outlets early Monday morning.
I TMd ask him to resign, is what Delphi retiree Gary Bates of Flushing said he would say to the governor, when asked if he had the chance. He spent 26 years at the old Flint facility on Dort Highway as a salaried engineer.
In the budget presentation, Snyder said it was about fairness and having everyone pay the same rate. However it TMs not exactly clear how pensions will be taxed, and Bates said targeting seniors is anything but fair.
We want to put all of the money and the recovery on the retired and the lower income people, but we TMll take away the business taxes. Sounds like favoritism to me, he said. Snyder TMs budget proposal eliminates the controversial Michigan Business Tax, helping to give a $1.8 billion tax break to larger companies.
Meanwhile officials with the AARP say they will vigorously fight the pension proposal as lawmakers take up that and other issues related to the budget in the next few months. Lawmakers have pledged to have the budget approved by July. Snyder TMs recommendations are worth $45 billion and erase a $1.4 billion deficit.
Feedback: How do you feel about Snyder's plan to tax pensions? Is it fair? Share your thoughts and comment below!
Also, read NBC25's in-depth look at Snyder's budget proposal here.