KEWADIN, MI – State Rep. Greg MacMaster (R-Kewadin) today lent his support to comments made yesterday by House Speaker Jase Bolger (R-Marshall) that Republicans want to use the state’s projected surplus to provide tax relief in 2014.
The state is expected to have a surplus of several hundreds of millions of dollars at the conclusion of the 2012-13 fiscal year. MacMaster said the expected surplus should be used to begin rolling back the 2011 law that taxes seniors’ pension through a new formula that applies a different tax based on birth year, marital status and pension amount.
MacMaster said today that he would soon begin discussions with administration officials and senior organizations, and that he expects to introduce legislation in early January.
MacMaster anticipates his roll back legislation will have bipartisan support.
“I agree with Speaker Bolger that any tax surplus should be returned to taxpayers. And I believe the number one target for relief should be Michigan seniors who saw their pensions taxed for the first time in 2011,”
“While it may not be possible to eliminate the pension tax altogether, we should begin the process of phasing it out,” MacMaster said. “And this will be my top priority when the Legislature returns in January.”