State Rep. Dale Zorn today voted against legislation that skews the tax code to favor seniors with public pensions over those with private pensions, 401(k) plans, or other retirement accounts.
Zorn, of Onsted, 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 Zorn supports would also offer relief to working seniors.
“The governor keeps saying she wants to repeal the retirement tax. I do too. But this proposal doesn’t cut it,” Zorn said. “This is an overly-complicated measure that picks winners and losers. It waives all taxes on public pensions while seniors who spent their lives working in the private sector continue to pay.”
The plan Zorn 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.
State Rep. Dale Zorn today celebrated advancing legislation that cuts taxes for retirees and working families across Michigan while also allowing the automatic income tax cut to kick in and put more in the pockets of every single Michigander.
State Rep. Dale Zorn on Thursday voted against a proposal the Democrat majority loaded with ill-conceived spending and used to play accounting tricks to block a long-awaited income tax cut.
© 2009 - 2023 Michigan House Republicans. All Rights Reserved.