Tagged: taxes

State lawmakers have begun their two-week spring break, but many of them say they will still be in Lansing working on budget issues. That includes negotiating with Governor Rick Snyder on tax reforms.

Lieutenant Governor Brian Calley says he expects lawmakers to meet Governor Snyder’s May 31st deadline to complete work on the budget.

“Any time that we waste right now adds time on the back end, and we really owe all the constituencies who depend on state an answer before we get to the same type of timeframe that we’ve dealt with in the past. So, it’s not really fair to put these things off until fall or even late summer.”

Snyder has proposed a tax on pensions, a new corporate income tax to replace the Michigan Business Tax, and scaling back tax credits.

Calley told lawmakers that if they don’t like Snyder’s plan, they need to put something else on the table that will help end the budget deficit.

Republicans in the Senate are expected to unveil a plan that includes an expanded corporate income tax, and to hold off on taxing pensions.

Property values have plummeted across the region.

That means cities and towns have watched their tax revenue plunge as well. But many homeowners and businesses think their property taxes are still too high.

The result is a double hit.

Local governments are in fiscal crisis, and the tax courts of Michigan, Ohio and Illinois are clogged with people who want refunds.

People like Donald Betlem.

Ever since Governor Rick Snyder released his budget plan last month, people have been looking at the details and wondering how they might be affected by the plans.

For people with pensions and the working poor, it's been clear, you would pay more if Snyder's plan is approved. But how much more?

The Detroit Free Press, in a series of reports, is seeking to break down the numbers. In their first report What Snyder's income tax plan means for you they summarize their findings this way:

Parents with low-paying jobs would stop getting state income supplements worth as much as $1,000.

High-income retirees with generous pensions would pay thousands of dollars more.

But taxpayers in brackets that cover most Michiganders would see little change in their state income tax bill under Gov. Rick Snyder's sweeping proposals.

The Freep provides some detailed examples of how the tax proposals might affect certain people.

About a thousand protesters gathered on the state Capitol lawn today and they say there will be more people joining them throughout the week.

They are protesting many budget proposals from Governor Rick Snyder and in the Legislature, including a plan to tax pensions.

Hundreds of people from AARP chanted loudly in opposition to Governor Snyder’s proposal to tax pensions to help end the budget deficit.

Many people held signs that read: “Recall Governor Snyder,” and “Recall The Nerd.”

Jeanette Stang held a sign that read “One-Term Nerd.”

Stang says her husband worked in an auto plant for 37 years, and now they have trouble making ends meet with increasing medical expenses and living off of their pension. Their Flint home is up for sale, and both of their adult sons have already moved out of state:

"Our sons both would not come to Michigan. They said Michigan has gone to pieces...Michigan used to be a beautiful state, and Michigan has really gone downhill…All he wants to do is keep taxing the little guy—tax these bigwigs that have their yachts and have their trips and everything else. Let the people who earned this money and worked hard all their life have their pensions and quick taxing us to death."

Snyder says seniors use government services just like all other taxpayers, and should be taxed on their pension income accordingly.

More protests coming

Labor movement protests at the state Capitol are expected to get bigger and louder as the week goes on and the Legislature votes on controversial issues.

The House is expected to give final approval to a package of bills that would give emergency financial managers more control over struggling communities and school districts, and strip control from local unions.