Should we tax pensions? Your opinion.

[Gene Clem]

We have heard a lot about whether to tax pension income on the Michigan income tax.  This was included in Gov. Snyder's budget proposal for the next two years. 

 

Our state senators and representatives have many tough choices to make and are reaching out to friends for advise.  They are asking Tea Party members all across the state what they are thinking.

 

This is your chance to voice your opinion.  Please go to the poll I constructed on google/docs and vote your opinion, yea or nay!  Then post your opinion on this forum.

 

If this works out well, we will forward the results to our reps in the SW MI area and the Tea Parties in other areas of the state.

 

Now, don't feel like some genius if you discover that you can vote more than once; just don't bother.  This is not a scientific survey, just a sense of where the folks in SW MI are at this point in time.

 

(Click Here to Vote)

[albaby]

Explain

David Stevens said:

Second, my social security has already been taxed so I shouldn't even be paying a federal tax but thanks to Clinton (a democrat) I'm paying twice. 

[albaby]

When was the first time?

David Stevens said:

So when you retire and are collecting social security you want it to be taxed a second time? Wheres the logic in that?

Bruce Barlond said:

Pensions must no longer be exempt from the Michigan income tax.  I think it rights a wrong that was perpetrated on Michiganders years ago that must be done away with now.  I think we need to start taxing all income at the same rate. 

[Diane Carl]

Taxed Enough Already!  I say audit the status of all the people who are receiving government assistance.  Are they truly unable to work?  How many are working under the table and collecting from the government?  We need to cut spending, not increase taxes on those of us who are living paycheck to paycheck already.  How many of these elderly folks can afford to give the government more money?  Which prescription medicine will they have to stop taking in order to feed the government?  If Michigan has lost so many people, have we downsized the number of state employees?  Bring on the Flat Tax.

[David Stevens]

Well anyone who works knows they figure SSI on my gross income not net.  SSI is not a 403 or 401 where they don't tax it and you pay taxes on it when you retire so I've paid a state and federal tax already on my social security money, don't tax me twice try taxing some of those in that 50% that don't pay any income tax on their earnings.

albaby said:

When was the first time?

David Stevens said:

So when you retire and are collecting social security you want it to be taxed a second time? Wheres the logic in that?

Bruce Barlond said:

Pensions must no longer be exempt from the Michigan income tax.  I think it rights a wrong that was perpetrated on Michiganders years ago that must be done away with now.  I think we need to start taxing all income at the same rate. 

[David Stevens]

I take it you don't work.

albaby said:

Explain

David Stevens said:

Second, my social security has already been taxed so I shouldn't even be paying a federal tax but thanks to Clinton (a democrat) I'm paying twice. 

[David Stevens]

Public pensions? Don't you think people pay into public pensions, this isn't California.  In Michigan the politicians in Lansing did what the congress did to social security, they spent it on welfare and other giveaway programs to people who leach off of society.  Now there's no money and they yell and scream.  Before term limits the legislature had a great retirement program and a lot of those politicians are getting great money and benefits, why isn't Snyder going after them, that would be a great start.

Ron Gelesko said:

Taxes need to be reduced dramatically.  Having said that ... any taxes that are administered, must be done IN A MANNER THAT IS FAIR AND EQUAL TO ALL.  If INCOME above certain levels must be taxed, then it shouldn't matter where that INCOME originates.  Excluding income from public pensions amounts to UNEQUAL taxation.  

Americans are increasingly UPSET about taxes; Americans are increasingly IRATE about the inequalities associated with these taxes.  

[David Stevens]

Not me, I've already paid a tax on my SSI and once the government starts taking it you'll never go back.  Stop giving money to welfare people  first.  If they collect welfare make go out and clean streets or some other job that will save the state money.  Make Michigan a right to work state, that will bring business back to our state.  People think all the jobs left Michigan and went to another country, sorry only about 1 in 4 went to another country, they left Michigan to get away from the unions and high corporate taxes.  All you people who want to keep feeding Lansing sit down and write a check right now but I have paid in all my life and I'm retiring in a few months and I'm keeping everything I can  or I'm going to a state that doesn't tax like Texas.

John C. Schneider said:

I think the question is worded incorrectly. It should read, "Do you feel taxing pensions is necessary to help solve Michigan's financial crisis." I certainly don't "favor" it, but am willing to share in the burden if it is absolutely necessary, providing it is applied equitably across the board. That means no one is exempt, and it is on a sliding scale based on the amount of the pension. There should also be a provision that restores the tax-exempt status of pensions, when the State finances recover to a predetermined level.

[Mic Ashbrook]

No. Cut spending and taxes period.

[Frank Buck]

Pensions taxed and Big Business getting a $1.7 billion (per year) tax break?  No to both.

[Robert and Marian Houtman]

1) The Governor campaigned on no tax increases. It is impossible to define taxing pensions other than as an infinite tax increase--from "zero" to 4.35% or 4.25%. Private or public defined benefit pensions, 401(k)s, IRAs, etc.--all will be taxed irrespective of who contributed to the funding of the plans. This taxation proposal is not just about public or private sector pensions.

2)  I've heard a lot about fairness and shared sacrifice. In that regard I'm concerned about seniors who planned their retirement including WHEN they would retire only to have the rules changed after they got out of the [employment] game. There is no way for them to re-enter the workforce to make up for fixed income lost to taxes. Would it be fairer to begin taxing pensions at some point in the future [5 to 10 years out?] to allow those who are approaching retirement a chance to plan for a tax hit?

3) I'm also concerned about seniors who are still working who will lose their EITC and also all seniors who will be impacted by the changes in Homestead Exemption at age 65.

4) If increased taxes are to be imposed, [Believe me, I'm not advocating for more taxes] why must $900 million come from senior tax increase to offset part of the business tax decreases? Has anyone considered a .5% increase in general sales tax to be earmarked for the General Fund?

5) States without income taxes welcome retirees--examples are Texas and Florida. They recognize the value of senior spending and investments on their economy. Is Michigan prepared to lose a significant number of seniors who are financially able to relocate their residency and take their pensions and investments with them?

6) Will making all these changes make Michigan competitive with Indiana or should we be more concerned about being competitive with India?????

I'm afraid the current proposal is pitting one generation against another and those seeking and needing jobs against businesses that "might" expand and provide more jobs if their taxes were lower. I hope the Legislature takes a step back and considers a broader picture and the potential ramifications of current plans. Overall I favor further cuts in spending over shifting or increasing taxes.

[albaby]

I am retired and have been for 15 years, I was in the workforce my entire life and never was on public assistance. Social Security is an investment in which you are recover at a certain age. I recieved more is SS in 6 years than both my employer and I both contributed. Thanks for the free ride for the last 9 years. I have no doubt you would rather shift the states debt burden to tomorrows workers even though you took advantage of the spending of and helped elect the people who got us into this mess.

David Stevens said:

I take it you don't work.

albaby said:

Explain

David Stevens said:

Second, my social security has already been taxed so I shouldn't even be paying a federal tax but thanks to Clinton (a democrat) I'm paying twice. 

[albaby]

Have a nice trip.

David Stevens said:

I'm going to a state that doesn't tax like Texas.

John C. Schneider said:

I think the question is worded incorrectly. It should read, "Do you feel taxing pensions is necessary to help solve Michigan's financial crisis." I certainly don't "favor" it, but am willing to share in the burden if it is absolutely necessary, providing it is applied equitably across the board. That means no one is exempt, and it is on a sliding scale based on the amount of the pension. There should also be a provision that restores the tax-exempt status of pensions, when the State finances recover to a predetermined level.