LANSING, Mich. (AP) — Michigan no longer would boast the nation's most generous tax breaks for seniors if a compromise plan to tax retirement income announced Tuesday becomes law.
Republican Gov. Rick Snyder had wanted to tax all retirement income the same as normal income to raise $900 million to help pay for a sweeping business tax cut, but many lawmakers balked after seniors made their displeasure clear. The compromise reached with Republican lawmakers would exempt seniors over age 66 from the tax.
More than a thousand angry seniors protested at the Capitol a month ago. Others told lawmakers during a recent legislative recess that the taxes would cost them several hundred to several thousand dollars a year, a hardship at a time when health care costs have gone up and pension or Social Security increases haven't kept up with rising expenses.
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