In this morning's news...
Snyder, GOP Leaders Come to Tax Agreement
Governor Rick Snyder and Republican leaders in the state House and Senate outlined a tentative tax agreement yesterday afternoon in Lansing. The plan includes a compromise on taxing retiree pensions. From Rick Pluta:
Michigan is one of just a handful of states that does not tax pensions. The deal between Governor Snyder and GOP leaders would shield people 67 years old and older from a pension tax. The governor originally wanted to tax all pensions, but he says compromises were necessary.
The plan also calls for scrapping the complicated and unpopular Michigan Business Tax in favor of a corporate income tax. That’s part of an overall tax cut for most businesses to spur job creation.
The plan would eliminate the tax break for working poor families, but offer some new tax relief for low-income homeowners and renters.
The plan must still be approved by the House and the Senate.
Bing Outlines Budget
Mayor Dave Bing proposed his budget for Detroit yesterday. The mayor warned that the city’s unions will have to make contract concessions in order to keep Detroit out of the hands of a state appointed Emergency Financial Manager. The city is facing a $155 million budget deficit. Bing said the deficit could grow to over a billion dollars in the next five years unless cuts are made now. Bing proposed $200 million in cuts and revenue in his budget proposal.
New Auto Jobs
The Detroit Three are poised to create new auto jobs for the first time in years, Tracy Samilton reports. But, Sean McAlinden, an economist at the Center for Automotive Research, says auto manufacturing jobs will never recover to their former levels. McAlinden says the Detroit Three will likely hire 35,000 people in the next five years. That’s only about a third of the people who lost jobs with the auto companies in the past few years.