LANSING – Governor Rick Snyder’s proposal to overhaul taxes through a new corporate income tax and the elimination of several exemptions, like the ones for pension income, will undergo changes in the House, although the exact nature of those alterations remains undetermined, Rep. Jud Gilbert said Wednesday.
Gilbert (R-Algonac), chair of the House Tax Policy Committee, speaking after the latest round of testimony on the plan before the committee, said he didn’t want to talk specifics until discussing the issue more with the House GOP caucus.
That said, “We’re going to certainly make changes,” he said.
Snyder’s tax proposal (HB 4361 , HB 4362 , HB 4479 , HB 4480 , HB 4481 , HB 4482 , HB 4483 , HB 4484 ) involves several major pieces, such as instituting a 6 percent corporate income tax on C-corporations, eliminating generous income tax exemptions for pension income and a slew of other credits within the personal income tax.
So far, Gilbert said concern from the House GOP has centered on one area: the pension tax.
“What I’ve heard about principally of concern is the retirement side of it,” he said.
House Republicans have been more circumspect about Snyder’s proposal, unlike the Senate GOP, where several members have openly said they will not support Snyder’s pension tax proposal. Gilbert said his sense of the House GOP is that the caucus is not flatly against the idea.
But where the issue is headed remains unknown, Gilbert said.
“I don’t know when we’re going to anything,” he said. But he also added, “I think we’re close.”
One major question Gilbert said he would like to answer before acting is how open the Senate is to some kind of tax on pensions.
Sen. Jack Brandenburg (R-Harrison Township), chair of the Senate Finance Committee, said in response, “We are looking at other alternatives.
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