Effects of Snyder's Budget

By: Jamie Edmonds Email
By: Jamie Edmonds Email

"It's scaring a lot of people," Jo Pamment said.

Pamment is talking about the state budget Governor Snyder presented Thursday. Among several things, Pamment, a retired teacher, is most concerned about the proposed taxes on pensions.

"I heard about the retirement tax, and I figured I better leave Michigan," she said. "I've been talking to colleagues and that's their thought, how will we survive?"

As things stand now, public pensions are exempt from the state's income tax, while private pensions are only taxed if they are above $45,120 for individuals, or $90,240 for joint filers.

Under Snyder's proposal, every pension in its entirety would be taxed at the state's income tax rate, which on October 1st will be 4.25 percent.

"For someone who gets $800 a month, it might come out to $40, but that's a telephone bill, that's a utility bill," Pamment said.

Some interest groups call that particular pension proposal an attack on seniors.

"It's not an attack, it's created a level playing field," Snyder said Thursday afternoon.

Lansing resident Scott Shepard is worried about Snyder's plan to get $180 million in concessions from state workers, one of which is his wife.

"A lot of people work for the state," Shepard said. "It's not going to help us any if he cuts all those jobs."

While Judith Price is concerned about the proposed 30 percent cut to revenue sharing, and what that means to public safety.

"These are necessary services," Price said. "That could be someone's life."

Snyder is calling it shared sacrifice, saying the way we do business in Michigan is changing.

"We're in this together, that's the right message to send," Snyder said.

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