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Mon March 14, 2011
Snyder stands by budget plans in face of protests
Senior citizens and union members are expected to rally tomorrow at the state Capitol to protest Governor Rick Snyder’s budget plans.
Seniors are taking aim at the governor’s proposal to start levying the income tax on pensions.
Michigan is one of four states that does not tax pensions.
Seniors say it’s not fair to tax pensions at the same time Snyder wants to reduce taxes overall on businesses.
But the governor says seniors who use state services and can afford to pay should share the tax burden:
"Because our population is continuing to age and we want a simple, fair tax system.
The idea here is lower-income people, whether you’re a senior or not, hopefully you’re not going to pay any income tax and we’ve structured the system to do that.
For people with higher incomes, we want something that’s simple, fair, and efficient," says Snyder.
The governor says he is open to compromise on details of his budget, but overall he stands by his plan.
Governor Snyder has also called for cuts to public schools, local governments and state employee compensation.
State employee unions say budget plans that require them to take cuts while Governor Snyder’s department directors earn as much as $250,000 a year are not fair (that's how much Snyder's Budget Director, John Nixon, makes).
Stephen Reck is with SEIU Local 517M – a union that represents state workers:
"Now, I’m not saying the new director isn’t worth $250,000.
If you’re going to attract and retain good people, you’ve got to pay them a fair wage, and that goes for state employees whether an engineer, a scientist, a clerical worker, or a budget director, but be consistent and that’s all we’re asking."
In addition to the seniors and unions expected to protest tomorrow, another rally is planned for Wednesday by a group calling itself "Working Michigan."