Seniors challenge pension tax

Aug 10, 2011

Groups representing seniors and public employees filed briefs Wednesday with the state Supreme Court challenging Michigan’s new tax on pension income. The court will hear arguments in the case early next month .

Extending the income tax to pensions was part of Governor Rick Snyder’s budget proposal that was adopted earlier this year by the Legislature’s Republican majorities.

Eric Schneidewinde is with the AARP of Michigan. He says the tax violates a part of the state constitution that protects the pension income of teachers and other retired public workers.

“They cannot be taken away by just a law,” Schneidewinde says.

Republicans say the tax treats everyone the same, so it does not specifically target public employee pensions. Schneidewind says the AARP and other senior advocates are plotting ways to repeal the pension tax altogether.

Governor Snyder asked the state Supreme Court to rule on the pension tax before it officially takes effect in January.