There’s a split emerging between Governor Rick Snyder and Republican leaders in the Legislature over cutting taxes.
Governor Snyder will present a budget next week for the coming fiscal year. Some Republican leaders in the Legislature are pushing for tax cuts. That includes an income tax rollback and some lawmakers are taking aim at the tax on pensions.
Snyder is pushing back. The pension tax was one of his first budget reforms after he took office in 2011. Snyder says that was only fair to people who were paying taxes on 401 (k) and other retirement plans.
“So I think it’s really important that people recognize what went out and what came in. And what we put in is actually helping a broader base of Michiganders that really need that benefit,” says Snyder.
Snyder says if lawmakers want to cut taxes, they should also identify where they would cut spending on services.
“The big question to ask is 'what are you going to otherwise cut, or where are you going to get the revenue to replace that?' So I’m open-minded, but people need to answer the second part of the question, also,” Snyder says.