MICHIGAN: Taxing pensions is fiscal reality...

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Friday, March 11, 2011

To:         Canton Observer

Re:         Letters on Taxing Pensions

There were many letters to the editor complaining about Governor Snyder’s new budget proposals especially the one taxing pensions. While it is true that Michigan has never taxed pensions it is also true that many states with a state income tax do. Michigan has been very generous in not taxing pensions but it can no longer afford this generosity. Pensions are after all ordinary income as opposed to Social Security retirement benefits which are not taxed.

Public union pensions are financed by taxpayer dollars and for the life of me, I don’t remember ever being asked if my tax dollars should or should not be used to fund pensions of public union workers. I do remember voting for Governor Snyder with the hope he would straighten out our financial mess here in Michigan, attract more business and create more jobs and given the chance I think he will do just that but I am disheartened by all the voices crying for change as long as it does not affect them. Even my state senator Patrick Colbeck who ran on a platform vowing to finally fix our finances cannot seem to disengage himself from politics as usual and do the right thing and support his governor’s efforts.

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