Tagged: Tax on pensions

This week in review Rina Miller and Jack Lessenberry discuss the possibility of repealing a tax on pensions, how Michigan's home foreclosure rate is no longer the worst, and how the international trade crossing has a presidential permit to move forward.

Governor Snyder stands by pension tax

Governor Snyder is standing by a new state tax on retirees' pensions despite calls from both Republicans and Democrats to repeal the legislation.

"A group of five Republican state senators wants to repeal the pension tax, and reinstate some homestead property tax credits. Snyder says the tax on pensions is just a matter of fairness so the tax burden falls equally," Michigan Radio's Steve Carmody reports.  

E. Coli outbreak reaches Michigan

Two Michigan boys are among those sickened by a nationwide outbreak of E. coli.

"The contamination has been traced to Farm Rich frozen food products including mini pizza slices, mini quesadillas with cheese and chicken, philly cheese steaks with cheese, and mozzarella bites. The recalled products were sold at Kroger, Spartan Stores and other chain supermarkets," according to Steve Carmody.

Oil spill on Grand River linked to malfunctioning equipment

The Board of Water and Light is attributing an oil spill into the Grand River in Lansing this weekend to a malfunctioning piece of equipment at their Eckert Power Plant.

"A utility spokesperson says fewer than 300 gallons of oil seeped into the Grand River. Oil-collecting booms have been deployed to contain the spill," reports Steve Carmody.

Governor Rick Snyder is cool to a proposal to roll back Michigan’s new pension tax.

The pension tax was part of a package enacted in 2011 that eliminated the Michigan Business Tax.

A group of five Republican state senators wants to repeal the pension tax and reinstate some homestead property tax credits.

Governor Snyder says the tax on pensions is just a matter of fairness, so that the tax burden falls equally. The governor insists the tax that pensioners are now paying is not too much ask.

LANSING, Mich. (AP) - Michigan says the new corporate income tax returns it's processing are much shorter in length than other business tax returns.

The state Department of Treasury says the returns submitted to date average 17 pages. That's 41 fewer pages than the average Michigan Business Tax return.

The Corporate Income Tax approved in 2011 took effect for the 2012 tax year. Some businesses still file an MBT return because they qualify for certain tax credits.

The state says some MBT returns are longer than 1,000 pages.

Two-thirds of Michigan businesses are in line for a tax rollback next year. The rest will pay a six percent tax on profits. Pensions in Michigan will be taxed for the first time. An income tax reduction will be delayed to save money to help balance a budget that reduces spending on schools, local governments, and higher education.

These are all details of a sweeping tax overhaul signed into law yesterday by Governor Rick Snyder.

Snyder made cutting and simplifying the taxes paid by businesses his marquee campaign promise, and he got to fulfill that promise just a few days short of five months in office.

“It will create jobs. I’m confident of that.”

The governor says Michigan’s business tax plan will be simpler, and fairer. Only a third of Michigan businesses – those with lots of shareholders and registered as “C” corporations under the tax code – will pay the six percent tax on profits after expenses.

The governor acknowledged some parts of the plan are controversial – especially taxing pensions. Next year, someone living on a $50,000 pension can expect to pay about $1,400 in state income tax.

Snyder says extending the income tax to people born after 1946 with pension income exceeding $40,000 means that share of the burden won’t be shifted to younger people.

“That’s going to help on that issue of keeping our young people right here in Michigan.”

And the governor – a former tech company CEO and venture capitalist -- says the state’s new business tax system should be solid enough to endure for another 50 years.