Snyder: Michigan pension tax will stand despite surplus
DETROIT (AP) - Gov. Rick Snyder says he won't reconsider a controversial tax on income of certain Michigan retirees.
Michigan has a large budget surplus, but Snyder tells The Detroit News 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.
Instead, Snyder says he's looking at increasing the personal tax exemption on the first $4,000 of income.
Income tax now applies to all retirement income for residents born since 1946, whether it's from a public or private pension, 401(k) or IRA. Nonetheless, exemptions can be claimed for up to $20,000 for a single filer and up to $40,000 for joint filers.