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Retirees Opposing Michigan Pension Tax In Court Filing

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LANSING (AP) – The AARP and other retiree groups are telling the Michigan Supreme Court that they believe a new state tax on public pensions is unconstitutional.

The retiree groups said Wednesday they filed a friend of the court brief on the matter this week.

Republican Gov. Rick Snyder’s administration says the tax is constitutional and has asked the high court to review it. Oral arguments are scheduled Sept. 7.
Snyder signed the sweeping tax law earlier this year. The new law will end income tax exemptions for some types of retiree income including pensions.

Eligibility to continue existing exemptions would be based on when a taxpayer was born and other factors.

The State Employees Retirement Association and the National Active and Retired Federal Employees Association joined the AARP in the new filing.

Copyright 2011 by The Associated Press. All Rights Reserved.

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