LANSING – Governor Rick Snyder’s pension tax proposals already appear in trouble in the Senate where a Gongwer News Service survey shows a majority opposing or leaning against the plan.
Gongwer contacted the offices of Senate Republicans who had not already publicly stated their position. Of those who responded, when combined with those who already had made public statements, none said he or she supports Snyder’s plan to tax currently untaxed pensions earned from public-sector jobs and eliminate the large exemption on pensions from private sector jobs of $45,120 for single filers and $90,240 for married couples.
Snyder’s office did not return a message seeking comment for this story.
Seven Republicans said they are outright against the plan while another three described themselves as leaning against it. Eleven were undecided and five did not return messages. All 12 Democrats also expected to oppose the plan, meaning Mr. Snyder would have to win over all the undecideds, those who did not return calls and persuade the three leaning against it to support the plan to get the 19 votes that would enable Lt. Governor Brian Calley to break a 19-19 tie to pass the plan.
Senate Republicans are in the early stages of crafting potential alternatives to find the $900 million that the pension tax moves would raise. The possibilities, which could be described as in the brainstorming phase, include going with a higher corporate income tax than the 6 percent rate Snyder has proposed, expanding that tax to more entities than just C-corporations, considering elimination of other tax exemptions and cutting much more than Snyder proposed in the 2011-12 budget.
Lawmakers have had more than a week – and two weekends back in their districts – to digest the proposal and hear from constituents. Virtually all said their offices have been fielding high volumes of calls and emails with respondents both indicating a willingness to see the tax enacted, but also strong opposition.
Matt Marsden, spokesperson for Senate Majority Leader Randy Richardville (R-Monroe), who has not taken a public position on the pension tax portion of the budget, said while individual members may have concerns, the caucus continues to study the plan and possible alternatives.
Asked if the odds were against the plan, Marsden said it would be unproductive to put odds on it because the potential alternatives have yet to be determined and those could conceivably be more difficult than the pension tax.
“I don’t think we’re far enough down the road of what the alternative landscape looks like,” he said.
Of where the Senate Democrats stand, spokesperson Katie Carey said, “I can’t imagine that any Democrat would vote for a $900 million tax increase on retirees.”
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