Lawmaker calls for pension tax rollback

From Gongwer News Service

After House Speaker Jase Bolger said this week he supports offering tax relief with the state’s projected surplus, Rep. Greg McMaster said on Thursday he would like to see the pension tax rolled back in 2014.

 “I agree with Speaker Bolger that any tax surplus should be returned to taxpayers,” Mr. MacMaster (R-Kewadin) said in a statement. “And I believe the number one target for relief should be Michigan seniors who saw their pensions taxed for the first time in 2011.”

AARP Michigan strongly supports a pension tax rollback.

 Mr. Bolger (R-Marshall) told Gongwer News Service for a story published Wednesday that he expects House Republicans to pursue a tax cut in 2014.

 Mr. MacMaster said the expected surplus should be used to begin rolling back the 2011 law that taxes seniors’ pension income much more aggressively for those born in 1946 and afterward.

 Mr. MacMaster voted twice for PA 38 of 2011, which besides increasing taxation of pension income also replaced the Michigan Business Tax with the Corporate Income Tax. He said he plans to introduce legislation to curb the pension tax when the Legislature reconvenes in January.

 Mr. MacMaster is running for the 37 ^th Senate District and faces a tough fight for the Republican nomination against Rep. Wayne Schmidt of Traverse City.

 “While it may not be possible to eliminate the pension tax altogether, we should begin the process of phasing it out,” he said. “And this will be my top priority when the Legislature returns in January.”