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untanglingwebs
El Supremo
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Gov. Rick Snyder May Propose Private Pension Tax Changes
Updated: Wednesday, 16 Feb 2011, 7:31 PM EST
Published : Wednesday, 16 Feb 2011, 7:31 PM EST
By BILL GALLAGHER
WJBK | myFOXDetroit.com
SOUTHFIELD, Mich. (WJBK) - Taxing pensions would be a fertile new source of revenue in Michigan as the state confronts growing deficits. Governor Rick Snyder's budget director indicates that could be a major proposal in the governor's spending plan, but selling it to the legislature and public could be difficult.
"Most of the people who are retired, I think, have paid their dues and they deserve the money that they get to support their needs," said retiree Gilbert Dunn, who has a public pension.
"Being a baby boomer that concerns me. What are we going to do when there's the need for us to draw on that pension? Will it be there? … I thought this governor is about cutting taxes, so why would he be taxing," said Southfield resident Antonio Avant.
"I don't think that taxing pensions is the right way to go," said Southfield resident Tracy Gruning. "Aren't we taxing everything these days? Isn't that the story?"
The Michigan Constitution exempts all public employee pensions from any state taxes, and of the 41 states with income taxes, Michigan and three others are the only that provide significant exemptions for private pensions.
Right now, private pensions are exempt up to $45,000 for individuals and $90,000 for joint filers. Governor Snyder could propose changing the thresholds for exemptions.
"Michigan is as generous as any state and more generous than most toward retirement income. A recent study indicated that 90-percent, perhaps more than 90-percent, of Michigan seniors pay no income tax," said Michigan State Professor of Economics Dr. Charles Ballard.
The economist has long advocated taxing pensions.
"As our population gets older and older, more and more people are in the category where they don't pay any income tax. That just puts us into chronic budget crisis," he said.
Getting the powerful AARP on-board will challenge the governor's political and persuasive skills.
"We oppose solving the state's problem on the backs of seniors if other folks aren't asked to share the burden. By that I mean if the only place that we're seeing a new tax is on senior citizens on retirement income, then we can't be a party to that," said Michigan AARP Communications Director Mark Hornbeck.
We could see other proposals that could soften the impact of taxing pensions. |
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Wed Feb 16, 2011 7:42 pm |
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untanglingwebs
El Supremo
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Flint Police Department could suffer if revenue sharing is cutUpdated at 06:53 PM today
Tags:flint, police department, public safety, budget, local, lori dougovito
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Lori Dougovito
More: Bio, E-mail, News Team
FLINT (WJRT) -- (02/16/11)--There's been word the state could cut up to $8 million in revenue sharing for Flint, and if that happens, city leaders say there will be cuts to public safety.
The public safety cuts would affect the Flint Fire Department, and also the Flint Police Department.
The revenue-sharing dollars are a staple helping to pay for public safety and other services. Flint Police Chief Alvern Lock says this is serious. This money is their lifeline.
Exactly one year ago when the city of Flint in a very similar situation, Mayor Dayne Walling announced massive public safety cuts -- 80 in all.
Police union leaders are bracing again for more bad news ahead of Gov. Rick Snyder's budget proposal.
"Just have to wait and see what the state does," said Flint Police Sergeants Union's Rick Hetherington. "Then we'll have to wait and see what Walling and crew do."
Hetherington, head of the union, has said it before.
"We just can't afford to lose any more," he said.
And he said it again Wednesday.
"We have dispatchers putting out calls, general broadcast, all day, because there's no one to respond," he said. "We're doing everything we can do."
If there are more cuts because of revenue-sharing cuts, will additional officers be lost?
"I'm not even thinking about that right now," Lock said. "That would be totally devastating."
The department last year lost dozens and dozens of employees right in the midst of the city's deadliest year on record.
"We have to wait and see what happens," Lock said. "We'll all come together and sit down and look at what our alternatives are and we'll just have to proceed from there."
Close to 70 pink slips were given last year on top of dozens more in previous years.
Union leaders once again say the city cannot afford to lose any more officers.
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(Copyright ©2011 WJRT-TV/DT. All Rights Reserved.) |
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Wed Feb 16, 2011 7:54 pm |
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