State Rep. David Martin this evening voted against legislation that skews the tax code to favor seniors with public pensions over autoworkers and others with private pensions, 401(k) plans, or other retirement accounts.
Martin, of Davison, 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 Martin supports would also offer relief to working seniors.
“We have so many retired autoworkers in our community who worked hard their entire lives to earn their retirement,” Martin said. “The plan Gov. Whitmer and the Democrats in the Legislature are pushing would require them to continue paying taxes on their retirement income while people with public pensions pay none. That’s not fair. I cannot support it.”
The plan Martin 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.
“Genesee County has a rich history, closely connected to the auto industry and the UAW – but that history is tied to auto workers who chose to unite together in the 1930s and stand up for their rights. The choice to join a union is the driving force behind the Right to Work law. When a worker sees the benefits of union membership and wants to join, they should. But no one should be forced to join a union so they can get a job. That’s not right.
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