Democrats Push to Repeal Massive New Tax Increase on Seniors
LANSING - House Democrats today introduced legislation to repeal the Governor’s massive new tax increase on Michigan seniors, a key factor in the recently signed state budget that gives an 82 percent tax break to corporations with no guarantee of a single new job.
“Forcing our seniors, workers, and families to pay more and more while cutting education and basic services will not help create jobs or turn our economy around,” said State Representative Jim Townsend(D-Royal Oak), a member of the House Tax Policy Committee. “Instead of waiting to see if the Michigan Supreme Court strikes this down, let’s give seniors the peace of mind right now that they won’t be saddled with paying for huge corporate tax breaks.”
The law passed by legislative Republicans and signed by the Governor creates a complicated tax structure for retirement income that violates their promise of “shared sacrifice,” taking a heavy toll on seniors in Michigan. This shift in the tax burden has a range of negative effects on seniors, depending on a resident’s age. They include losing or reducing a personal exemption, paying brand-new taxes on private and public pensions, paying taxes on Social Security benefits, and losing or reducing their Homestead Property Tax exemption.
“Seniors seem to have a target on their back from politicians in Lansing and Washington,” said State Representative Brandon Dillon (D-Grand Rapids), who also recently sponsored a resolution opposing the Congressional Republican attempts to end Medicare. “Our parents and grandparents should not have to bear the brunt of all the fiscal mismanagement of the past, and neither should our kids.”
House Democrats will continue standing up for seniors and advocating for these changes.
“Folks who have worked hard all their lives have earned the right to retire with some financial security and the ability to take care of themselves,” said State Representative Jim Ananich (D-Flint), a cosponsor of both bills. “Helping them keep more money in their pocket means they can support local businesses and improve our local economies.”