Snyder, Republicans Finalize Pension, Tax Plan 4-13-2011 - WNEM TV 5

Snyder, Republicans Finalize Pension, Tax Plan 4-13-2011

Gov. Rick Snyder has announced a new plan to tax retirees' income up to age 67.
The Republican governor had wanted to tax all retirement income the same as normal income in a bid to raise $900 million to help pay for a business tax cut, but many lawmakers balked after seniors made their displeasure clear.
Snyder has been working to reach a compromise with top Republican lawmakers, and they joined him at his announcement Tuesday.
Michigan currently exempts all Social Security and public pension benefits from income taxes, as well as up to $45,120 a year for a single return and $90,240 on a joint return in private retirement and pension benefits, a cap that increases annually with inflation.
The new deal would completely exempt taxing pensions for seniors who are 67 and older.
Coming up tonight at 5: TV5's Brian Wood talks one-on-one with the governor about the pension tax situation.
Retirees older than 60 would get a tax exemption on $20,000 in pension income. Michigan would have the 14th best income tax and the eighth most generous treatment of retirement income among states with income taxes.
The governor said exempting some pension money could reduce tax revenue by several hundred million dollars. Democrats remain opposed to the idea.
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