DETROIT (WWJ) - Governor Rick Snyder’s plan to tax pensions and retirement incomes has not gotten much support, even from members of his own party.
Speaking live on WWJ Newsradio 950 Wednesday morning, Gov. Snyder said his Republican plan to exempt some pensions of those 67 and older from state income tax is the result of feedback from the public. His initial plan to tax pensions was met with big displeasure from seniors.
“Based on the feedback and a good discussion with both the House and Senate, we’re modifying the plan to basically phase it in for most seniors in a much more gradual basis, which should address a lot of issues and concerns that people have had,” Snyder said.
“So, basically, if you’re a senior that will be 67 in 2012, if your birthday is in 1946 or before, we’re not going to change how your retirement income is being treated at all, or your other investment earnings. That would stay the same as if it were under current law,” Snyder continued.
For those 60 or over, Snyder said there will be a state income tax exemption of $20,000 for individuals and $40,000 for couples.
In addition to more budget cuts, Snyder wants to make some changes in the Homestead property tax credit and corporate taxes to make up for some of that lost revenue.
Meanwhile, a big protest over other aspects of the budget is expected in Lansing on Wednesday. Snyder explained he respects the fact there are passionate people on both sides of the issue.
“That’s democracy, um, so I respect their right to have their say and I’m sure they’ll be quite vocal on that,” Snyder said.
Supporters are hoping for 20,000 people at Wednesday’s “National Day of Protest” rally.
“We also need to remember that there are a lot of good people out there that are very supportive of what we are trying to do because it’s all about reinventing Michigan. We are all focused on job creation and keeping our kids in the state. And I believe we’ve got a good plan to get there,” Snyder continued.
Listen below to the Governor’s full interview on WWJ Newsradio 950.