Thread: Michigan wants to end tax break for seniors

Republican Gov. Rick Snyder is drawing recall threats and angry protests over his attempt to do what no Michigan governor has tried in more than 40 years: Tax the pension and 401(k) incomes of millions of retirees.



The move has brought demonstrators to the Capitol and has thousands of seniors reminding the new governor that they could make re-election difficult for him and lawmakers who go along. Democrats oppose the move, and even some GOP lawmakers are casting about for an alternative to avoid raising taxes on a powerful interest group

It looks like the new Governor is going to tax his voting base in order to pay off his rich friends and business associates,

Snyder campaigned last year on a promise to replace the complex and unpopular Michigan Business Tax with a 6% corporate income tax, a move that would eliminate $1.7 billion in revenue. But he didn't reveal until last month that he wanted to pay for it by requiring more money from individual taxpayers.



The governor has put the business tax cut and pension tax increase into one bill so lawmakers cannot choose between them. But many Republicans see Snyder's plan as violating their pledge not to raise taxes, and some lawmakers are talking about shrinking the size of the business tax cut so they don't have to totally eliminate senior tax breaks.

Michigan wants to end tax break for seniors- MSN Money