Michigan Supreme Court Upholds Tax On Pension
LANSING (WWJ) – The Michigan Supreme Court says a new law taxing public pensions does not violate the state Constitution.
WWJ’s Lansing Bureau Tim Skubick explains that the court has said that this law is not a violation of the constitution – taxing the pensions of senior citizens.
Starting January 1 barring any other judicial interference or rulings – everyone under the age of 67 in Michigan will begin to pay the state income tax 4.35 percent on their pensions – for the first time in state history – this has been legalized – this was one of the center pieces of the governor’s revision plan upheld by the Supreme Court on a 4-3 vote reports Skubick.
The advisory opinion is a major victory for Gov. Rick Snyder, who signed the sweeping tax changes earlier this year.
-READ MICHIGAN SUPREME COURT OPINION – pdf file.
-SYLLABUS – MICHIGAN SUPREME COURT - pdf file.
The opponents of the law – AARP (American Association of Retired Persons) – say this is really a graduated income tax and therefore violated the state constitution.
State officials expect the law will generate as much as $330 million in 2013.