Tax on pensions http://michiganradio.org en Snyder defends “pension tax” in special message on aging http://michiganradio.org/post/snyder-defends-pension-tax-special-message-aging <p>Governor. Rick Snyder is firing back against critics of his so-called “pension tax.”</p><p></p><p>Snyder gave a special address on aging Monday in Rochester. He used part of the speech to defend his 2011 decision, which ended the practice of exempting pensions from state income tax.</p><p></p> Tue, 03 Jun 2014 10:32:04 +0000 Jake Neher 17833 at http://michiganradio.org Snyder defends “pension tax” in special message on aging Snyder: Michigan pension tax will stand despite surplus http://michiganradio.org/post/snyder-michigan-pension-tax-will-stand-despite-surplus <p>DETROIT (AP) - Gov. Rick Snyder says he won't reconsider a controversial tax on income of certain Michigan retirees.<br /><br />Michigan has a large budget surplus, but Snyder tells <a href="http://www.detroitnews.com/article/20140118/POLITICS02/301180020/Gov-Snyder-says-challenges-Detroit-bankruptcy-stressful-amid-efforts-resolve-it?odyssey=tab|topnews|text|FRONTPAGE">The Detroit News</a> 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.<br /> Sat, 18 Jan 2014 19:43:00 +0000 The Associated Press 16080 at http://michiganradio.org Snyder: Michigan pension tax will stand despite surplus Michigan’s budget surplus: More money, more problems? Sure, but it beats the alternative http://michiganradio.org/post/michigan-s-budget-surplus-more-money-more-problems-sure-it-beats-alternative <p>Lansing these days could be renamed Surplus City, where we’re just looking for ways to spend the money that Michigan is expected to rake in this year. It appears our deficit days are behind us; we are now looking at a tidy little budget surplus. Early estimates put the number in the <a href="http://www.freep.com/article/20140103/NEWS06/301030016/tax-cuts-senate-fiscal-agency-michigan-jase-bolger">hundreds of millions of dollars range</a> but we’ll get an official projection a week from today when the state holds the next <a href="http://michiganradio.org/term/revenue-estimating-conference">revenue estimating conference</a>.</p><p>People come to the Capitol and watch as economists talk about, ya know, economic things and come up with an official budget number. And one thing is certain: No matter how big the surplus is, there will be more ideas on how to spend it than actual money to spend. And, there’s already a list including road funding and more money for schools and universities.</p><p>Democrats also say they want to restore the Earned Income Tax Credit and Homestead Property Tax Credit. And, there will likely be talk about more money for local governments. These are things that Democrats, as the minority party in the Capitol, would typically have little influence over. But they have a little more to work with right now. That’s because, for one thing, it’s an election year, if -- as expected -- Republicans put more money into schools and universities -- it becomes harder for Democrats to use those as campaign issues. There’s also controversial questions like road funding and auto insurance, issues that aren’t likely to get resolved without some measure of Democratic cooperation.</p><p>So, we are faced here, with a fiscal philosophical question: What is a budget surplus? Fri, 03 Jan 2014 18:35:04 +0000 Zoe Clark & Rick Pluta 15873 at http://michiganradio.org Michigan’s budget surplus: More money, more problems? Sure, but it beats the alternative Michigan's new tax on pensions challenged in court http://michiganradio.org/post/michigans-new-tax-pensions-challenged-court <p>A class-action lawsuit has been filed on behalf of retired public employees against the state for extending Michigan’s income tax to pensions.</p><p><span style="line-height: 1.5;">Extending the income tax to pensions was part of a tax overhaul adopted by the Legislature in 2011 that scrapped the Michigan Business Tax.</span></p><p><span style="line-height: 1.5;">People born after 1945 started paying taxes on pension income last year.</span></p><p><span style="line-height: 1.5;">The lawsuit claims the state broke a promise made in writing to retirees.</span></p> Tue, 06 Aug 2013 14:26:13 +0000 Rick Pluta 13845 at http://michiganradio.org Michigan's new tax on pensions challenged in court The week in review: taxing pensions, foreclosures and international bridge http://michiganradio.org/post/week-review-taxing-pensions-foreclosures-and-international-bridge <p></p><p>This week in review Rina Miller and Jack Lessenberry discuss the possibility of repealing a tax on pensions, how <a href="http://www.michiganradio.org/post/michigans-home-foreclosure-rate-closer-national-average-0">Michigan's home foreclosure rate</a> is no longer the worst, and how the international trade crossing has a <a href="http://www.michiganradio.org/post/report-proposed-detroit-windsor-bridge-gets-key-permit">presidential permit</a> to move forward.</p><p> Sat, 13 Apr 2013 13:02:00 +0000 Jack Lessenberry & Rina Miller 12114 at http://michiganradio.org The week in review: taxing pensions, foreclosures and international bridge In this morning's news: Pension tax, E. coli outbreak, Grand River oil spill http://michiganradio.org/post/mornings-news-pension-tax-e-coli-outbreak-grand-river-oil-spill <p><strong>Governor Snyder stands by pension tax</strong><br><br>Governor Snyder is standing by a new state tax on retirees' pensions despite calls from both Republicans and Democrats to repeal the legislation.<br><br>"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 <a href="http://michiganradio.org/post/michigans-governor-doesnt-think-state-should-repeal-new-tax-pensions">reports</a>. &nbsp;<br><br><strong>E. Coli outbreak reaches Michigan</strong><br><br>Two Michigan boys are among those sickened by a <a href="http://michiganradio.org/post/e-coli-outbreak-and-food-recall-includes-michigan">nationwide outbreak</a> of E. coli.<br><br>"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.<br><br><strong>Oil spill on Grand River linked to malfunctioning equipment</strong><br><br>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.<br><br>"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,"<a href="http://michiganradio.org/post/lansing-utility-cleaning-small-oil-spill-grand-river"> reports</a> Steve Carmody.</p><p> Tue, 02 Apr 2013 11:24:06 +0000 Michigan Radio Newsroom 11965 at http://michiganradio.org In this morning's news: Pension tax, E. coli outbreak, Grand River oil spill Michigan's governor doesn't think the state should repeal new tax on pensions http://michiganradio.org/post/michigans-governor-doesnt-think-state-should-repeal-new-tax-pensions <p>Governor Rick Snyder is cool to a proposal to roll back Michigan’s new pension tax.</p><p></p><p>The pension tax was part of a package enacted in 2011 that eliminated the Michigan Business Tax.</p><p></p><p>A group of five Republican state senators wants to repeal the pension tax and reinstate some homestead property tax credits.</p><p></p><p>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.</p><p></p><p></p> Mon, 01 Apr 2013 13:00:00 +0000 Steve Carmody 11949 at http://michiganradio.org Michigan's governor doesn't think the state should repeal new tax on pensions Michigan processes shorter corporate tax returns http://michiganradio.org/post/michigan-processes-shorter-corporate-tax-returns <p>LANSING, Mich. (AP) - Michigan says the new corporate income tax returns it's processing are much shorter in length than other business tax returns.<br><br>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.<br><br>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.<br><br>The state says some MBT returns are longer than 1,000 pages.<br> Sun, 31 Mar 2013 15:38:47 +0000 The Associated Press 11945 at http://michiganradio.org Snyder signs tax restructuring... Now what? http://michiganradio.org/post/snyder-signs-tax-restructuring-now-what <p>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.</p><p>These are all details of a sweeping tax overhaul signed into law yesterday by Governor Rick Snyder.</p><p>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.</p><blockquote><p>&ldquo;It will create jobs. I&rsquo;m confident of that.&rdquo;</p></blockquote><p>The governor says Michigan&rsquo;s business tax plan will be simpler, and fairer. Only a third of Michigan businesses &ndash; those with lots of shareholders and registered as &ldquo;C&rdquo; corporations under the tax code &ndash; will pay the six percent tax on profits after expenses.</p><p>The governor acknowledged some parts of the plan are controversial &ndash; especially taxing pensions. Next year, someone living on a $50,000 pension can expect to pay about $1,400 in state income tax.</p><p>Snyder says extending the income tax to people born after 1946 with pension income exceeding $40,000 means that share of the burden won&rsquo;t be shifted to younger people.</p><blockquote><p>&ldquo;That&rsquo;s going to help on that issue of keeping our young people right here in Michigan.&rdquo;</p></blockquote><p>And the governor &ndash; a former tech company CEO and venture capitalist -- says the state&rsquo;s new business tax system should be solid enough to endure for another 50 years. Thu, 26 May 2011 10:44:53 +0000 Rick Pluta 2648 at http://michiganradio.org Snyder signs tax restructuring... Now what? Shortchanging the Future http://michiganradio.org/post/shortchanging-future <p>Macomb County Commissioner Phil DiMaria is angry about Gov. Rick Snyder&rsquo;s proposal to tax pension income, and he&rsquo;s doing something about it. He&rsquo;s launched a statewide petition drive to oppose the tax, which is key to the governor&rsquo;s proposed budget.</p><p>DiMaria, who has been on the county commission for twenty years, thinks the governor is badly out of touch. &ldquo;He&rsquo;s rich. He&rsquo;s never going to be an old person who has to pinch pennies to try and get by, try and buy milk and bread,&rdquo; he told me yesterday.</p> Mon, 21 Mar 2011 18:26:20 +0000 Jack Lessenberry 1731 at http://michiganradio.org Shortchanging the Future State Budget Director says he hears complaints about pension tax plan http://michiganradio.org/post/state-budget-director-says-he-hears-complaints-about-pension-tax-plan <p>The state&rsquo;s budget director says Governor Rick Snyder&rsquo;s proposal to tax pensions is necessary to keep young people in the state.&nbsp;&nbsp;&nbsp;Budget Director John Nixon&nbsp;says the proposed tax will move Michigan into a sustainable future economy.&nbsp;</p> Fri, 18 Mar 2011 20:02:10 +0000 Laura Weber 1715 at http://michiganradio.org State Budget Director says he hears complaints about pension tax plan Protests to continue in Lansing tomorrow http://michiganradio.org/post/protests-continue-lansing-tomorrow <p>More protests are planned to take place at the state Capitol tomorrow. From the&nbsp;<a href="http://www.dailytribune.com/articles/2011/03/13/news/srv0000011141418.txt">Daily Tribune</a>:</p><blockquote><p>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.<br /><br />&quot;We don&#39;t think it&#39;s fair the governor increases tax on seniors and the poor while giving breaks to business and cutting services,&quot; said Mark Horbeck, of AARP Michigan, a sponsor of the rally. &quot;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.&quot;<br /><br />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.<br /><br />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.</p><p>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.</p><p>Taxing her pension, Woodward says, could force her to choose between her home and her car.</p></blockquote><blockquote><p>State Sen. John Pappageorge&nbsp; R-Troy, sits on both the Senate Finance Committee and the Senate Appropriations Committee, which will deal with both Snyder&#39;s tax proposals and spending plans.<br /><br />He says it&#39;s too early to tell whether taxing pensions is an idea that will eventually pass the Legislature.<br /><br />&quot;There&#39;s not sufficient support yet because we haven&#39;t had a chance to dig into it yet and see if we like it as is or if we can improve on it,&quot; Pappageorge said. &quot;The point is it&#39;s just a little too early. You can&#39;t just look at pensions, you have to look at the whole picture and see if we&#39;re doing this as fairly as possible.&quot;</p></blockquote><p>The protest comes just days after the legislature <a href="http://www.freep.com/article/20110311/NEWS15/103110454/-100-cost-shield-Gov-Rick-Snyder-s-tax-proposal-from-voters">added a $100 expenditure item</a> to the governor&#39;s tax code bill, thereby making it impossible for <a href="http://whtc.com/news/articles/2011/mar/12/governor-bypasses-voters-adding-tax-code-bill/">Michigan voters to repeal</a>.</p><p>The state Supreme Court ruled in 2001 that legislation that included expenditures was immune to repeal by voters. Mon, 14 Mar 2011 20:21:46 +0000 Michigan Radio Newsroom 1642 at http://michiganradio.org Protests to continue in Lansing tomorrow