Tax on pensions

The week in review: taxing pensions, foreclosures and international bridge

Jack Lessenberry and Rina Miller — Sat, 13 Apr 2013 13:02:00 +0000

This week in review Rina Miller and Jack Lessenberry discuss the possibility of repealing a tax on pensions, how Michigan's home foreclosure rate is no longer the worst, and how the international trade crossing has a presidential permit to move forward.

In this morning's news: Pension tax, E. coli outbreak, Grand River oil spill

Michigan Radio Newsroom — Tue, 02 Apr 2013 11:24:06 +0000

Governor Snyder stands by pension tax

Governor Snyder is standing by a new state tax on retirees' pensions despite calls from both Republicans and Democrats to repeal the legislation.

"A group of five Republican state senators wants to repeal the pension tax, and reinstate some homestead property tax credits. Snyder says the tax on pensions is just a matter of fairness so the tax burden falls equally," Michigan Radio's Steve Carmody reports.

E. Coli outbreak reaches Michigan

Two Michigan boys are among those sickened by a nationwide outbreak of E. coli.

"The contamination has been traced to Farm Rich frozen food products including mini pizza slices, mini quesadillas with cheese and chicken, philly cheese steaks with cheese, and mozzarella bites. The recalled products were sold at Kroger, Spartan Stores and other chain supermarkets," according to Steve Carmody.

Oil spill on Grand River linked to malfunctioning equipment

The Board of Water and Light is attributing an oil spill into the Grand River in Lansing this weekend to a malfunctioning piece of equipment at their Eckert Power Plant.

"A utility spokesperson says fewer than 300 gallons of oil seeped into the Grand River. Oil-collecting booms have been deployed to contain the spill," reports Steve Carmody.

Michigan's governor doesn't think the state should repeal new tax on pensions

Steve Carmody — Mon, 01 Apr 2013 13:00:00 +0000

Governor Rick Snyder is cool to a proposal to roll back Michigan’s new pension tax.

The pension tax was part of a package enacted in 2011 that eliminated the Michigan Business Tax.

A group of five Republican state senators wants to repeal the pension tax and reinstate some homestead property tax credits.

Governor Snyder says the tax on pensions is just a matter of fairness, so that the tax burden falls equally. The governor insists the tax that pensioners are now paying is not too much ask.

Michigan processes shorter corporate tax returns

The Associated Press — Sun, 31 Mar 2013 15:38:47 +0000

LANSING, Mich. (AP) - Michigan says the new corporate income tax returns it's processing are much shorter in length than other business tax returns.

The state Department of Treasury says the returns submitted to date average 17 pages. That's 41 fewer pages than the average Michigan Business Tax return.

The Corporate Income Tax approved in 2011 took effect for the 2012 tax year. Some businesses still file an MBT return because they qualify for certain tax credits.

The state says some MBT returns are longer than 1,000 pages.

Snyder signs tax restructuring... Now what?

Rick Pluta — Thu, 26 May 2011 10:44:53 +0000

Two-thirds of Michigan businesses are in line for a tax rollback next year. The rest will pay a six percent tax on profits. Pensions in Michigan will be taxed for the first time. An income tax reduction will be delayed to save money to help balance a budget that reduces spending on schools, local governments, and higher education.

These are all details of a sweeping tax overhaul signed into law yesterday by Governor Rick Snyder.

Snyder made cutting and simplifying the taxes paid by businesses his marquee campaign promise, and he got to fulfill that promise just a few days short of five months in office.

“It will create jobs. I’m confident of that.”

The governor says Michigan’s business tax plan will be simpler, and fairer. Only a third of Michigan businesses – those with lots of shareholders and registered as “C” corporations under the tax code – will pay the six percent tax on profits after expenses.

The governor acknowledged some parts of the plan are controversial – especially taxing pensions. Next year, someone living on a $50,000 pension can expect to pay about $1,400 in state income tax.

Snyder says extending the income tax to people born after 1946 with pension income exceeding $40,000 means that share of the burden won’t be shifted to younger people.

“That’s going to help on that issue of keeping our young people right here in Michigan.”

And the governor – a former tech company CEO and venture capitalist -- says the state’s new business tax system should be solid enough to endure for another 50 years.

Shortchanging the Future

Jack Lessenberry — Mon, 21 Mar 2011 18:26:20 +0000

Macomb County Commissioner Phil DiMaria is angry about Gov. Rick Snyder’s proposal to tax pension income, and he’s doing something about it. He’s launched a statewide petition drive to oppose the tax, which is key to the governor’s proposed budget.

DiMaria, who has been on the county commission for twenty years, thinks the governor is badly out of touch. “He’s rich. He’s never going to be an old person who has to pinch pennies to try and get by, try and buy milk and bread,” he told me yesterday.

State Budget Director says he hears complaints about pension tax plan

Laura Weber — Fri, 18 Mar 2011 20:02:10 +0000

The state’s budget director says Governor Rick Snyder’s proposal to tax pensions is necessary to keep young people in the state. Budget Director John Nixon says the proposed tax will move Michigan into a sustainable future economy.

Protests to continue in Lansing tomorrow

Michigan Radio Newsroom — Mon, 14 Mar 2011 20:21:46 +0000

More protests are planned to take place at the state Capitol tomorrow. From the Daily Tribune:

Opponents of the proposed tax on pensions plan to rally at the state Capitol from 9 a.m to 1 p.m. Tuesday, March 15, with speakers between 11 a.m. and 1 p.m.

"We don't think it's fair the governor increases tax on seniors and the poor while giving breaks to business and cutting services," said Mark Horbeck, of AARP Michigan, a sponsor of the rally. "Seniors and the working poor are going to be asked to pay more taxes. What do they get in return? Less services and a business tax cut."

Other groups expected to attend include the Michigan League for Human Services and the state employee retirement association, as well as lawmakers from both parties, said Horbeck, though he declined to name the lawmakers.

AARP is one of the sponsors of the rally, but the rally was really the brainchild of Mary Lee Woodward of Oxford, a General Motors retiree who launched a Facebook page to protest the proposed tax.
She says she launched the Facebook page as soon as the governor made his budget proposal to the Legislature last month. Other efforts include passing out fliers of the upcoming rally.
Taxing her pension, Woodward says, could force her to choose between her home and her car.

State Sen. John Pappageorge R-Troy, sits on both the Senate Finance Committee and the Senate Appropriations Committee, which will deal with both Snyder's tax proposals and spending plans.

He says it's too early to tell whether taxing pensions is an idea that will eventually pass the Legislature.

"There's not sufficient support yet because we haven't had a chance to dig into it yet and see if we like it as is or if we can improve on it," Pappageorge said. "The point is it's just a little too early. You can't just look at pensions, you have to look at the whole picture and see if we're doing this as fairly as possible."

The protest comes just days after the legislature added a $100 expenditure item to the governor's tax code bill, thereby making it impossible for Michigan voters to repeal.

The state Supreme Court ruled in 2001 that legislation that included expenditures was immune to repeal by voters.