© 2021 MICHIGAN RADIO
91.7 Ann Arbor/Detroit 91.3 Port Huron 104.1 Grand Rapids 91.1 Flint
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Politics & Government

Snyder: Michigan pension tax will stand despite surplus

rtwsigned_058_0.JPG
Steve Carmody/Michigan Radio
/
Gov. Rick Snyder (R-MI) (file photo)

DETROIT (AP) - Gov. Rick Snyder says he won't reconsider a controversial tax on income of certain Michigan retirees.

Michigan has a large budget surplus, but Snyder tells The Detroit News that revisiting the 2012 tax is not on his radar. He calls it an issue of fairness, saying pensions shouldn't be treated differently for tax purposes than other retirement income.

Instead, Snyder says he's looking at increasing the personal tax exemption on the first $4,000 of income.

Income tax now applies to all retirement income for residents born since 1946, whether it's from a public or private pension, 401(k) or IRA. Nonetheless, exemptions can be claimed for up to $20,000 for a single filer and up to $40,000 for joint filers.

Related Content