LANSING — Governor Gretchen Whitmer continues to advocate for eliminating the “Retirement Tax” as budget talks continue in Lansing. However, Republicans in the legislature have balked at the proposal – instead they have passed numerous tax cut proposals that would give tax giveaways to the wealthy.
Whitmer says repealing the retirement tax would save 500,000 Michigan households an average of $1,000 per year.
“By the end of 2024, my proposal would again exempt public pensions and restore deductions for private retirement income, including private-sector pensions, withdrawals from individual retirement accounts (IRA), and the portion of a 401k account that is subject to an employer match,” Whitmer said in a letter to the state’s Legislature. “Retirement income for people born after 1946 is taxed. That’s just wrong. After working for a lifetime, Michiganders deserve to retire and keep their hard-earned dollars.”
Senior groups have applauded Governor Whitmer for her work to save retirees thousands, “I’m very eager to see if (repealing the retirement tax) not only changes whether retirees stay in Michigan, or if it is going to create more talent development with younger generations that see that they’re not going to get a tax on their pension,” said Melissa Seifert with AARP of Michigan.