Snyder's Tax Proposals Upset Some, Win Support From Others

By: Liam Martin Email
By: Liam Martin Email

LANSING -- As Gov. Snyder delivered the first budget proposal of his inaugural term, various groups were already plotting their responses.

Many Thursday tell News 10 they are not surprised, but disappointed, in the governor's approach on tax reform, saying he's proposing $1.8 billion in breaks for business (through elimination of the Michigan Business Tax) by placing extra weight on senior citizens and the poor.

"Big tax increases [by subjecting public/private pensions to state income taxes] along with a drastic reduction in funding to local governments -- all to go toward a big tax break for business," said Eric Schneidewind of the Michigan AARP.

He and retiree groups across the state are especially upset about that plan to tax pensions, noting many seniors live on fixed incomes and won't be able to shoulder that extra burden.

In addition, Snyder's plan calls for the elimination of the Earned Income Tax Credit, expected to save the state about $330 million, but depriving some low-income families of a needed bonus -- though Snyder's administration points out the federal EITC will remain in place.

"The policy, which is essentially intended to get people back to work, is a good one," said Lt. Gov. Brian Calley. "We think the federal EITC accomplishes that goal."

Other changes include the elimination of tax credits for film and brownstone redevelopment and a stop to future reductions of the individual income tax, which would drop from 4.35 percent this year to 4.25 percent.

The MBT, meanwhile, would be replaced with a flat 6 percent corporate tax, though many smaller businesses across the state would pay nothing.

Snyder says his tax plan, along with cuts to a number of state services, will balance the budget.

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  • by non anonymous on Feb 18, 2011 at 06:24 PM
    I have to admit, Snyder isn't kicking the can down the road anymore. A Lot of you have remained optimistic and hopeful that if you just waiting things would improve. Snyder will bring back jobs for you, they will be slave labor like in china. We are going back to working conditions and treatment that brought about the need for Unions.
  • by Anonymous on Feb 18, 2011 at 12:31 PM
    If you are on the RICH side of course you are for all this.Now if your on the low side of poorer,like social security,low income working,and have already been considered poverty-Heck NO you don't want all this to happen at once.I say jobs first,let jobs fix stuff,not just put most all of this on the backs of the old & poor.Isn't that rather cruel.
  • by Linda Location: Clarkston on Feb 18, 2011 at 09:49 AM
    when i was married and my husband retired it was just ok for the wages...but now as a widow there was so much that was on under $900 a month...and some friends and relatives living on less that $750 a month, the cost of living, well that says a mouth full..I think you new tax idea should start now on the ones that still have an income before they retire...our husbands put their time in and many has passed away, so you know where that puts us as far as living..just wanted you to think this over for our sake...If everyone like you say pays their share of this package...JUST THINK IF YOU START AT THE TOP WHO LIVE LIKE KINGS AND QUEENS AND LET THEM LIVE ON $1000 A MONTH...SEE HOW FAR THEY MAKE IT...but at least the bills would be caught up...thank you for listening
  • by Anonymous on Feb 18, 2011 at 09:24 AM
    I agree eliminating any tax exemptions for anyone who is not paying taxes.
  • by Dion Location: Eaton Rapids on Feb 18, 2011 at 04:58 AM
    I am glad that someone is finally doing the hard work and making the tough decision to do what is right. We all need to share the burden; including the legislature. I am looking at a news clipping from the Flashers Shoppers Guide that says that Michigan legislators make a base annual pay of $79,600 with an annual expense pay of $12,000. In contrast the state of Texas,which is the second most populas in the country only pays their legislators and average of $7,200. This clipping also reports that more than 30 states in the union keep their legislator positions to part-time with a salary of $30,000 or less. Are Michigan part-time or full-time? Either way $90,000 seems like alot of money for any job. It seems fitting they should only make whatever the average wage in Michigan is.
  • by F- Snyder Location: Michigan on Feb 17, 2011 at 09:13 PM
    Its says he will finance the 1.8 Billion Buisness tax cut. Net -$400 million to michigan tax payers.
  • by ?? on Feb 17, 2011 at 08:33 PM
    Where do you suggest we cut back on then??
  • by Tom on Feb 17, 2011 at 08:27 PM
    As a senior, I could never understand the big break the state gave us on pension income tax. And, even worse it was doubled for state pensions. Most seniors with a pension work income or Soc Sec are making more than many people working who are paying state taxes. It will cost me, but it's only fair.
  • by paths Location: 48917 on Feb 17, 2011 at 06:08 PM
    This is very upsetting. We seniors on a very limited budget already now Synder says he is taking a cut my ***. When he is a billionaire. He has money while his constituents are hurting so I guess pile it on some more!!!!! Let the kids have education in limited edition make sure that those who don't have money to feed their children stay that way. Lets have more accidents no more SALT, also those who help in way of the 911, police, firetrucks or firemen cutback because all of that should help budget. I would like to ask our so called gov. since when removing protection and help when people need it helps the budget. This has been tried before!!!
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