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.

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