Skubick: Senior pension tax could go away


Bi-partisan support is building to repeal the senior pension tax which is the centerpiece of the Snyder administration’s tax policy.

Under the governor’s pension tax, the state now removes about $400 for every $10,000 in your retirement check.

And there is growing bi-partisan support in both the House and Senate to scrub the senior pension tax.

“It’s a total repeal of it,” said Sen. Rick Jones. “We’ll go back to be what it used to be years ago.”

“I support it,” echoed Sen. Curtis Hertel, Jr. “I think the pension tax was a bad thing when we put it in there.”

Senator Jones says he’ll find the replacement money that the state would lose if the tax is wiped out. “It’s collecting revenue from seniors that they planned on to retire. We can make do without it.”

He has an idea where he could find the money. “I’m certain we can cut the Department of Corrections.”

Democrat Rep. Jeremy Moss will vote with the Republican senator to do it and he won’t be alone since he’s been griping about it since 2010.

Rep. Moss explains, “the Senior Pension Tax compensated for the fact that the governor gave generous tax breaks to corporations so I don’t think the seniors should be footing the bill for tax breaks for those at the top.”

The Republican who controls the state budget is open to the tax relief.

“I’d look at some sort of tax relief,” says Sen. David Hildenbrand. “I don’t know what that means exactly until we look at it in a comprehensive way.”

Tax relief for retirees on the way. Maybe.