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Rep. Bellino: Stop balancing the state budget on the backs of Michigan’s senior citizens
RELEASE|February 27, 2019

State Rep. Joe Bellino today testified on his plan to repeal Michigan’s pension tax and eliminate an unfair financial burden on seniors of the present and the future.

“I’m fired up to see this issue making some progress and getting some consideration,” said Bellino, of Monroe, after testifying on his proposal in the House Tax Policy Committee. “I’m hoping we can work together in a bipartisan way to bring relief to the seniors who worked their entire lives to retire peacefully in financial security – only to have that security threatened by an unexpected twist in state policy back in 2011. I’ve said it before, and I’ll keep saying it until we get this pension tax repealed: It’s time we stop balancing the state budget on the backs of seniors and bring them the relief they have earned.”

Bellino’s plan – introduced on the first day of the new legislative session – would eliminate the pension tax approved in 2011, re-establishing Michigan’s previous retirement tax structure. Public pensions would be exempt from taxation and other retirement income would have higher deductibles for state income taxes. Social Security income would continue to be exempt.

Bellino’s proposal also would eliminate Michigan’s current, clumsy three-tiered retirement tax structure – which now has different rules for taxpayers depending on what year they were born.

Bellino said Michigan’s economy and state budget both have improved dramatically since the pension tax was adopted.

“Ditching the pension tax has been a topic of discussion for both Republicans and Democrats for a long time,” Bellino said. “It’s time to move past the talk and take action. It’s just not right to have some of our most vulnerable residents – many of whom live on fixed incomes – struggling to make ends meet because of a tax they never planned for and never expected.”

The legislation – House Bill 4006 – remains under consideration in the Tax Policy Committee.

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