Michigan retirees call for repeal of new retirement income tax

Dec 2, 2011

LANSING, Mich. (AP) - Organizations representing retiree groups say they want the Michigan Legislature to repeal an unpopular tax on pensions, or lawmakers will pay the political price in the 2012 election.

The AARP and groups representing public employee retirees called for a repeal Friday before the new tax plan takes effect in January.

The groups say they haven't ruled out filing suit in federal court to try and block the changes, but they are focused on getting lawmakers to take action.

It's highly doubtful the Republican-led Legislature would consider repealing the income tax that will be instituted on some forms of retirement income. The Michigan Supreme Court ruled last month that key aspects of the pension tax law approved this year are legal.