Posted on 02/27/2011 9:47:07 AM PST by madison10
The tax overhaul plan proposed by Michigan Gov. Rick Snyder, shown speaking at the at the University of Michigan earlier this month, could be costly for thousands of Michigan residents.
However “simple, fair and efficient” Gov. Rick Snyder says his overhaul of Michigan’s personal income tax is, it’s still a whopper of a tax increase for hundreds of thousands of Michigan residents.
For politically active seniors, the increased tax bill could easily run into the thousands of dollars -- sticker-shock territory.
Michigan is only one of four states with an income tax that exempts retirement pensions from the levy. Economists have said it is fundamentally unfair to tax the income of wage-earners, but not the retirement income of seniors who rely on many of the same state services as everyone else...
(Excerpt) Read more at annarbor.com ...
So retired people just making it have to pay YET MORE to the government unions? Does Michigan have a tax-&-spend Democrat in Republican’s clothing for a governor?
If you think this is bad wait...
They are rangling over what a 1.8 billion shortfall, wait until they tackle the 151 billion in long term Liabilities....
Looks like there will be more elderly people in Michigan whom are at their winter homes in Florida, Arizona, Alabama, Arkansas and other warm states will be putting up for sale more homes in an already glutted market of foreclosed homes, abandoned homes and basically homes that the owner has just walked away from a home valued less than the mortgage. Thanks Synder. Just remember the last person to leave Michigan remember to turn the lights off.
Wow knowing how many retired UAW members with huge pensions there are in MI lettng them have free ride borders on criminal and makes those of us who work have to carry their load as well.
One thing here that would make me against it is if there is any double taxation. Other than that, it seems to be a more equal system. However, it shouldn’t be cover for the fact that the tax burden need to be lowered overall through cuts in spending.
It might surprise you to know that Illinois is another state that does not tax "pension income".
They get us in every other way imaginable though. While less progressive states consider the "sugar tax" on soda pop, Illinois has had it since Sept. 2009. That's just one example.
Last June, when I turned 65, I went to the county seat and applied for the reduced rate for seniors. I got it and it almost cut my property taxes in half for the following year, 2011. however, my property has been reassessed upwards to right back where my taxes were previously.
What are you talking about? Seniors pay income tax on Social Security. Why shouldn't they pay tax on retirement payouts?
It's considered a scandal here in New York that state retirees pay no state income tax on their pensions. The truth is that everyone should pay income taxes.
And, yes, even the poor. It might make them try to think a bit before they vote.
I'd rather have a 5% income tax on everyone than a 6% income tax with 0% for seniors.
Conservatives usually fight for taxes to be low, but we also need to be diligent on making sure that they are evenly applied.
Right now in CT, we don't tax Yoga or clothing (under $50) or wood pellets or other stuff. I'd rather it be equitable, and not that the government try to choose what industries it's going to effectively subsidize.
let me put this into perspective.... my MIL pays no taxes on what little income she has, has no taxes withheld, yet gets a check from the state every year for a tax refund. Explain to me how this is even remotely fair....
What you say might or might not be true, but to try to solve a state government’s fiscal shortfall by raising taxes is spelled D-E-M-O-C-R-A-T.
We’ll see how this goes. Although we are young (50s) we are on a fixed income/pension, wonder if we’ll survive more taxes...barely holding on as it is. Unlike the seniors, we have no SS to back us up and there are MANY like us.
Untaxed pension is very rare among US States.
Michigan is full of UAW retirees getting stout money.
They should be paying their “fair” share
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