Taxing pension income in Michigan

[bluestateguy]

Few states exempt pension income from taxation, but Michigan does. The governor has proposed taxing pension income of private and public employees. The unions and the Democrats in the legislature object, and the idea is not going over well with Republicans who are calling it just another tax increase. So there might be a left-right alliance against it.

Anyway, what say you? I have to say that I don't like the idea that, for example, some rich corporate executive who lives in Bloomfield Hills can just just take a golden parachute pension worth hundreds of thousands of dollars and have it be exempt from the income tax. That should change. But the idea that some GM or Ford retiree who has a pension of say $20,000 and only has that and Social Security to live on, well, I don't think it's right to hit him with a tax increase like this.

[roamer65]

1. I'd tax it over $50,000/year.

We also need to pass a constitutional amendment in MI to allow for a progressive income tax. Flat rate income tax is just stupid.

[notadmblnd]

2. under Michigan law, only the first 45k is exempt

so those with millions of $$ in pensions are paying taxes on it. Factory workers make nowhere near 45k in pension per year. Most are between 15 and 17k per year. Police and fire get close to 40k, but again 45k is exempt.

I hear he also wants to give tax cuts to businesses? This is yet another assault on those trying to maintain a middle class status

[roamer65]

3. So Governor Dickie wants to stick it to the middle class.

Typical Rethug.

[notadmblnd]

4. I find myself wondering why so many men who go by the moniker "Dick"

seem to be named so appropriately?

[jdlh8894]

5. Guess you should ask their parents.n/t

[Festivito]

6. His next election is several voter memory losses away. /nt