Government

Those state tax changes – Are they fair to young, old?

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By XINJUAN DENG
Capital News Service
LANSING – Debates about taxes on pensions and the middle class continue to rage in the Capitol with different groups disputing their fairness. In the run-up to November’s House election, Democrats are attacking changes by the Republican-led Legislature that they say punish middle-class families, including a pension tax, reduced homestead property tax credit, reduced Earned Income Tax Credit and elimination of the $600 per child deduction. But Gov. Rick Snyder said, “It is important to leave retirement pensions as they are for our citizens age 67 and older. We are able to move forward with a revised plan that still adheres to the principles I laid out with my budget and tax initiatives, will create jobs and protect the safety net for Michigan families.”
And Ari Adler, press secretary to House Speaker Jase Bolger, R-Marshall, said the Republicans are trying to reset the system to achieve fairness. “That’s why there are no pension exemptions until age 67,” Adler said.

Government

Counties, business groups, state officials seek ways to stem revenue loss from tax reform

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By ALEX MITCHELL
Capital News Service
LANSING—With Gov. Rick Snyder planning to propose reforms to Michigan’s personal property tax this month, many counties and businesses are speculating about potential ways to replace lost revenue. Businesses pay personal property tax on their equipment. Critics say the tax discourages businesses from growing because they pay more as they invest in equipment. But local governments are worried because the tax accounts for anywhere from 3 percent to 27 percent of revenue for Michigan counties. “We won’t be proposing to totally do away with personal property taxes but to both change the way the system works and get rid of certain classifications of personal property taxes that do the most harm to Michigan,” Lt. Gov. Brian Calley said.