State Rep. Joe Bellino today introduced a plan to repeal Michigan’s pension tax, a move that would help seniors of today and tomorrow hold onto more of their own hard-earned money.

Bellino’s plan – introduced on the first day of the new legislative session – would eliminate the pension tax that was first charged in 2012.

“Michigan should not be balancing its state government budget on the backs of seniors,” said Bellino, of Monroe. “They worked hard for decades with the expectation their retirement income would not be taxed, but the rules were changed on them in the middle of the game. This new legislation sets things right by getting rid of the pension tax.”

Bellino’s measure would re-establish 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.

“Times have changed for the better since the pension tax was adopted,” Bellino said. “Back then, the economy was bottomed out and the state budget was a mess. That’s simply not the case anymore.

“It’s time we get rid of the pension tax so seniors – many of whom live on fixed incomes and struggle to make ends meet – have more money for groceries, medication and other basic needs.”

Bellino, beginning his second term in the Michigan House, consistently fights for lower taxes. His plan providing tax relief to hundreds of police and fire department retirees was signed into law in late 2017. Bellino also sponsored and supported other proposals that would lower income tax bills for seniors.

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The legislation: House Bill 4006.