(AREA) — State Representative Gary Howell has introduced legislation to reform Michigan’s punitive tax on retirement income. The North Branch Republican says the legislation extends the $20,000 per-person tax exemption beyond the existing cutoff for anyone born after 1952, allowing the exemption for people born through 1961. Retirement income would only be taxed after the first $20,000 for a single retiree and $40,000 for those filing jointly. In 2011, the state enacted legislation to remove a long-standing tax exemption for retirees. House Bill 5534 will be formally introduced when the Legislature reconvenes on April 12. According to Howell, the change will ensure that those already retired or close to retirement will get relief from this unfortunate aspect of the tax code.
PICTURED: State Rep. Gary Howell, R-North Branch, discusses legislation to reform pension taxes during a meeting in his Lansing office. Rep. Howell’s measure, House Bill 5534, extends the exemption on the pension tax to people born in 1961 or earlier.
