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Michigan House Republicans
Rep. DeSana: Democrats push tax plan that treats most retirees, working seniors unfairly
RELEASE|January 27, 2023
Contact: James DeSana

State Rep. Jim DeSana late Thursday voted against legislation that skews the tax code to favor seniors with public pensions over working seniors and retirees with private pensions, 401(k) plans, or other retirement accounts.

DeSana, R-Ash Township, said the convoluted plan being pushed by Democrats also delays relief for years; in contrast to a plan introduced by House Republicans that provides fair tax savings to Michigan seniors by treating all retirees the same, regardless of their source of retirement income. The proposal DeSana supports would also offer relief to seniors who are still working.

“The plan approved by the Legislature this week is being framed as a repeal of the retirement tax – but it’s really only aimed at helping people with public pensions,” DeSana said. “If you’re a retired autoworker, or you spent your life working at one of the many small businesses in our community, you could still be required to pay taxes on your retirement income under this plan. I voted ‘no’ because I know we can do better. We need a fair plan that offers immediate relief for all seniors.”

The plan DeSana supports, House Bill 4008, which would enable seniors 67 years and older to deduct $40,000 of all income from the state income tax, or $80,000 for couples filing jointly. The plan would further enable seniors ages 62 to 66 to deduct $20,000 of retirement income for individuals or $40,000 for joint filers. Deduction amounts would increase with inflation.

The Republican proposal would take full effect in tax year 2023, while the plan passed by Democrats would take years to fully implement relief.

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