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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  • by SPEAK OUT! Location: Lansing on Feb 22, 2011 at 03:26 PM
    Tax my retirement pension? Easy to do when lawmakers passing these laws don't fit into the "middle class"! What a joke! Doe's anybody realize how badly this will hurt the state economy when we all move to a "friendly" state who will welcome our retirement spending dollars! Hell, I can move to Florida and live free for a month on the Michigan Pension Tax paid! Retirees need to wake up and say ENOUGH! Don't wait for others to do this for YOU!
  • by Susee Location: Lansing on Feb 21, 2011 at 01:16 PM
    I am a proud State worker. I have a masters degree, with loans to pay off. I work 40+ hours a week. I don't get paid for the extra time I put in. I don't get paid for the extra things I do at home for my job. I have had furlough days, bank time, a raise only to get it taken away weeks later, etc. I am tired of people complaining about lazy overpaid state workers. I would encourage any of you WITH an education to apply for a thankless job, and to have people call you lazy and overpaid continuously, yet when the budget is in crisis, your jobs and benefits are the first attacked. Many of my colleagues are highly educated individuals who do this to serve the people of this state. When I left the private sector to come to the public sector, I actually took a pay cut. So before you all speak, make sure you know what you are talking about! And, when we complain that we are worried, we are chastised! Well, now you know what it feels like! That $40 you were bothered about a month, well, get used to it, because when you get a furlough day, you work for FREE! And, when you get bank time, you get to work for extra time off. DEAL WITH IT FOLKS! Walk a day in our shoes!
  • by Scott Location: Allen Park, MI on Feb 21, 2011 at 07:37 AM
    The “shared sacrifice” in Gov. Snyder’s budget really means middle-class martyrdom. This millionaire businessman hopes to eliminate the Michigan Business Tax and give big business a $1.8 billion tax break. He plans to fill the void in the state budget with job and spending cuts affecting ordinary citizens. The sacrifice on the altar of the Republican god, Big Business, means taking from municipal services, senior health care, police, fire, public education and others so that business can operate in this state with a flat corporate tax on profits at 6 percent. It is no surprise that Snyder, a rich private businessman, focuses deep spending cuts and new tax increases at middle-class public employees. Such union workers are a threat to his management demands. Republican lawmakers already saddled public school employees with a substantial cost increase last year on their retirement and would now like to add large increases on their medical benefits.
  • by DownAndOut Location: Lansing on Feb 19, 2011 at 02:17 PM
    Snyder's proposed budget will have a big impact on many retirees. It could end up costing me an additional $2,000 per year. Between taxing my pension at 4.25% and eliminating the property tax credit of up to $1,200 will amount to about 10% of my income. I think a better plan is for Michigan to have a graduated income tax. Also the Michigan Legislature needs to control its spending instead of increasing taxes.
  • by terry Location: mi. on Feb 19, 2011 at 06:11 AM
    start with dropping pensions for public office and elected officals.do away with free health care for these people,you take from the public ,and public programs,you are not serving your country you are serving your self.get rid of all your perks.when i see you actuale biting the bullit then maybe i will to.retired and fed up in mi.
  • by Allison Location: Elsie on Feb 19, 2011 at 05:41 AM
    We're outa here! What in the world is our Govervor Snyder thinking? Taxing the poor and those of us on a fixed income is no way to fix the budget! I'm incluuding us to be in the poor part of the economy, we can hardly make ends meet as those on social security haven't gotten a raise in three years , while the price of everything keeps going up. How in the world does he justify hitting those on a fixed income to fix the economy. There are so many other things that could be taxed that affect the wealthy, such as golf,skiing,facials,massages,wines and champagnes,pet grooming,alcohol tax,sports areanas, to name only a few, but we don't see those things being taxed. Why? Because those are the things that he and the wealthy do, I am so mad at our government for always trying to impose taxes on the underdog!!!!!Wake up people, there won't be anyone left in Michigan to tax shortly. We'll all have moved out of state to a state that doesn't impose taxes on our pensions.We don't need him!
  • by Mary Anne Location: Jackson on Feb 19, 2011 at 12:21 AM
    Concerns are rightful in this governor's budget, but anyone who is greedy enough to think their pension shouldn't be taxed like other retirements should be considered as selfish as a uber-rich. You aren't any more special than me. My retirement is taxed; what makes you so special? Your wages and benefits while employed were generous enough!
  • by Noel Location: Lansing on Feb 18, 2011 at 08:10 PM
    Shared sacrifice?? Really?? What's the sacrifice for Snyder's cabinet that received huge salary raises? What's the sacrifice for Snyder, who is working for $1 this year, but is a millionaire many times over? Come on! All of you who just had to have a Republican governor, I hope you are happy!
  • by Lynne Location: Grand Ledge on Feb 18, 2011 at 07:48 PM
    What we have been doing does not work. Let's try something different. There is a lot of waste and a lot of people that want to protect it because they are looking at the small picture rather than Michigans survival. Snyder's budget has a negative effect on my retirement income but I am at least willing to try what he is proposing.
  • by Gary Location: Dimondale on Feb 18, 2011 at 05:35 PM
    Snyder's budget conveys his republican belief that all economic activity is bad if it is undertaken by the government and good if it is done by capitaists. The problem is that there are functions that just don't work well in the free market. Health care is one of them. If you make more money when more people are sick, then the model calls for more sick people. This is part of our problem. But he is trained to not see that at all. There is no talking to him or convincing him. His ego is as big as a house.
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