Tuesday, January 14, 2014
Rep. Dianda introduces bill to repeal state pension tax
"Punishing seniors who are already struggling to make ends meet is wrong," Dianda said. "The pension tax has made life difficult for a lot of seniors in the U.P. who have worked hard their whole lives and are now surviving off a fixed income. I will do everything in my power to see that it’s repealed."
Under the current Republican-backed law, the tax treatment of retirement income is largely based on the age of the taxpayer and affects anyone who was born in or after 1946. For married taxpayers, retirement/pension deductions are based on the oldest spouse. This new tax is being deducted from pension and retirement benefit distributions, including distributions from pensions, IRAs, annuities, profit-sharing, stock bonuses and any other deferred compensation plan or certain life insurance contracts issued by life insurance companies.
"I take my job seriously, and when a concern is brought to my attention I make sure something is done about it," said Dianda. "I will not give up urging my colleagues to pass this bill, which would restore tax fairness to Michigan’s seniors."