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The Michigan...Tax Plan...Presented...Signing Soon

By
Real Estate Agent

The local papers being used for this posting are:
....The Detroit News                        www.detnews.com
....The Detroit Free Press                  www.freep.com 

Research offered from:
... http://www.mea.org/
... http://www.forbes.com/
... http://washingtonexaminer.com/
... http://www.freep.com/fedp/?unique=1305331865822  [editorial / May 13 2011]



The Tax Reforms:    quoted from  www.detnews.com /Friday May 13, 2011 /Pg 1A & 10 A / Karen Bouffard /Lansing
 a.  Business Tax:
     The Michigan Business Tax will be eliminated and replaced with a 6 % corporation tax--paid by companies with
      shareholders.
     Sole proprietorships, LLC, partnerships and other entities would be exempt.

 b.  Pension Tax:
     On the now pension tax, no change for taxpayers born before 1946:
     public pensions & social security income= exempt;
     for those with private pensions, income is exempt for individuals up to $45,120. / joint filing up to $90,240.
     Those taxpayers born between 1946 - 1952: social security = exempt
     on private & public pensions exempt for ind. up to $20,000 / joint up to $40,000--until age of 67;
     Upon turning 67 yrs old--amt. of exempt income would be $45,120 for ind. / $90,240 for joint filers;

c.  For taxpayers born after 1952:
     Exemptions on all income--except Social security--would be eliminated until reaching age 67;
     at reaching age 67:
     ....income from all sources including Social Security would be taxed above $20,000 for ind. / $40,000 joint filers;
     ....tax payers having income-- for individuals of more than $75,000 & joint filers more than $150,000 =
         not eligible for exemption;
    ....for those are eligible for the $20,000 - $40,000 exemption could opt to forgo this exemption in exchange for
        exempting 100% of social security income.

d.  Earned Income Tax Credit:
     The earned Income tax credit for the working poor will be reduced under the new formula-
     families will receive about $138.00 which is down from $432.00

House passes  56 - 52
Senate passes 20 - 19



From the Macomb Daily  www.macombdaily.com / Friday May 13, 2011 / 1A & 4A / Tim Martin /
"House sends broad state tax reform to gov"

The opening sentence states that ' ...would cut overall business taxes,eliminate some tax credits and raise many Michigan residents' income taxes is on its way to Gov. Rick Snyder.....'
...the Lt.Gov. Brian Calley cast the "tie-breaking vote"
...quoting Snyder as saying '..the tax proposal is key to his plan to reinvigorate the state...make it more attractive
   to businesses.
...supporters  back it because of "...need to spur business...create more jobs.."
...opponents as voiced by state Democrats include the following, that '...business tax cuts 
   at the expense of retirees who would see some of their income taxed; as well as lower-income workers...'

                                   


According to this reporter:  the tax plan would cut overall business taxes by $1 B in fiscal year starting 1 Oct. '11.
It is estimated to cut them by $1.7 B for 2012.

It needs to be noted that there is a scheduled rollback of the state's personal income tax rate which will be addressed by the legislature later this year. 
This seems to be one reason put forth by those GOP who voted "Nay / No"
 

Other   Research articles:

From the Washington Examiner http://www.washingtonexaminer.com/ /Press writer contribution
Kathy Barks Hoffman /  "Broad tax proposal clears Michigan Legislature"
..."many of the GOP governors who took office this year have moved to sharply reduce business taxes,
    but Snyder has made it happen quickly.";
...he [Snyder] has lawmakers rushing to complete the budget for the fiscal year that starts Oct. 1, by the end of
   the month [May 30];
...he reminded them that he wants everyone working in "Dog years".
...he is unfazed by polls showing that 60 % of likely voters statewide disapprove...[never called us]

From the Forbes.com  http://www.forbes.com/  a Friday morning call-in show is reported upon by the sane writer  Kathy Barks Hoffman : 

The callers are not identified as to state, or political-bent.
Callers had questioned "how many jobs will be created..."
Again,by the calls--it is reiterated that these cuts will be paid for by raising taxes on individuals & cutting services.
As to cutting tax credits to some programs..Snyder--addressing the restoration of Historic buildings or areas that are / were contaminated by previous industrial use: "That's one of the areas we probably should have put more in the budget for."  He plans to set aside more money for those types of tax credits in the budget.

The MEA
--Michigan Education Association   http://www.mea.org/
Sent out a post on May 12/ 2011 stating that 'Today the Michigan State Senate voted to raise taxes on seniors and working families t pay for $1.8 B tax breaks for corporate special interests ....[they list their choices of businesses]"

The "We are the People. we are the MEA" coalition spokesman Zack Pohl- states " instead of attacking vulnerable seniors and working families, it's time for Gov. Snyder and Lansing politicians to start standing up for the middle class, creating obs, and get the economy moving again."


The Pros and The Cons have been heard from and will be invited to speak their minds or their collective group-stands as the days move onto other items on the New Michigan state Budget.

This will be an interesting and informative next few weeks for Michigan.

Stay tuned...
as the items are brought forth...they will be presented here for your 'edification".

Those of you who have read other posts here--are aware that we, some of those Seniors who are being picked upon, do NOT subscribe to that position.
We have already made the arrangements needed as cuts previously have dictated.
We do not now and never will "look to the government" for our direction in life.


Detroit Free Press Editorial Writer ; Barb Arrigo: Michigan's revenue looking up?

Another "Reason" put forth by some of the NO votes by GOP legislators was that they wanted to wait until the state
 
Estimated Revenue Reports were filed today--Monday May 16, 2011: Barb Arrigo states: 
"...bottom line is that they [Revenue Estimating Conference] went high with the figure of how they expected
   the fiscal year to end on September 30, 2011;
...the amount of $429 M has to be offset by the need for another $100 M for Medicaid, at the least in terms o what might actually be available to spend / save"

see: http://www.freep.com/article/20110516/Blog2501/11   to read the entire article.
Very Interesting Read. 

    

Posted by


Live, Learn, Love, & always remember to Laugh!

 
a Keyless start....a Forward Looking VIEW from the DASH; Join the RIDE 


Barb & Sal

Comments (4)

Ellen Caruso
Daniel Gale Sotheby's International Realty - Glen Head, NY

Barb, There is nothing nice to say when the word taxes is RAISED! Some win, some loose, but never easy for any of us!

Hope your having a nice night!

May 16, 2011 02:34 PM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Barb,

Sounds like some INTERESTING tax planning. I prefer simple things... especially when it comes to taxes.

Have a great day!

Steve

May 17, 2011 04:50 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Ellen...so right ! There is follow up in the local papers today-not as much as the pre-stands, but still some articles on the "What" is in the tax plan. 
Now that there is an "estimated" positive number $429 M, folks are lining up to spend that which is not even a reality, just a almost, probable, possible windfall that will be seen after Sept. 30th, 2011.
There is some positive items - in the realm of job creation. so who knows what Michigan will see at this time in 2010.
One thing is certain---not everyone will be happy about anything that happens in Michigan--too many sacred Oxen.  Thanks for your comment.  Have a great week.

Barb

May 17, 2011 07:56 AM
Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Steve...what is it that "they" say: "you only need to live, die & pay your taxes"  Can't get any more simple that that--however, it is in the living where various complications arise.  Personally, look upon the happenings here in MI as moving in the right [pun intended] direction.  That we may actually see a budget in time rather than the past practice of extension until Oct. --is a great step forward.  This way, we will have a grasp on where MI is heading and how MI is going to get there. 
Doubt that too much in Michigan politics will ever be simple; apparently there is a group who are trying to recall the Governor.  Interesting to read just who these 'founders' are & to which working groups they belong.
One thing--MI politics will not be boring any time soon.   Thanks for your comment.  Have a good week.
Barb

May 17, 2011 08:02 AM