Andy Schor

Steve Carmody / Michigan Radio

State House Democrats are once again calling for a repeal of Michigan’s tax on pensions.

The 2011 tax code rewrite means some retirees are paying taxes on previously untaxed pension income.

State Rep. Theresa Abed, D-Grand Ledge, says it’s unfair to seniors.

“It is wrong to balance the budget on the backs of those on a fixed income with no way to make it up,” says Abed.

The pension tax is expected to generate about $350 million this year.

A bill to repeal the pension tax has been languishing in the Legislature since 2013.

Student loan payments may be applied as tax credits if a new bill in Lansing becomes law. Democratic State Representative Andy Schor is sponsoring the legislation. 

He says “it’s the start of keeping that talent here and reversing the brain drain as we create some of the places where they want to be.”