October 23, 2014

/

Latest News, Michigan, Videos

NEW TV AD: Education Cuts & Higher Taxes For Seniors Show Snyder Only Fights For the Wealthy

The Democratic Governors Association today released a new television ad in the Michigan governor’s race featuring ordinary Michiganders who have been hurt by Governor Rick Snyder’s $1 billion cut to schools and higher taxes on seniors. The Republican governor made deep cuts to education, hiked seniors’ property taxes, and raised taxes on retirement while his administration officials got massive pay raises.

“Governor Snyder raised property taxes on seniors and taxed retirement while cutting $1 billion from schools,” said DGA Communications Director Danny Kanner. “What’s worse is that he did it all while giving his administration officials massive pay raises and cutting taxes for businesses, even if they ship jobs overseas. Snyder’s policies clearly work for the wealthiest and well-connected, but they’ve punished the rest of Michigan.”

Watch the ad here: http://youtu.be/zk0TcRLPl8Q

AD BACKUP:

Claim Backup
Video: Entire ad is video of real people approaching the state capitol.  We hear each person’s interview bites at the same time, but don’t see them speaking.

 

RICK SNYDER

RAISED TAXES ON RETIREMENT

 

Audio: [Real people interview bites, off-camera] “If I could talk to Governor Snyder, I would ask him why he raised taxes on my retirement.”

 

.

 

 

Snyder Taxed Retirement Income. “Gov. Rick Snyder signed the biggest tax overhaul in Michigan in 17 years that finances the elimination of the Michigan business tax with a bundle of changes to the personal income tax. Overall, it amounts to a $220 million net cut in tax revenues to state coffers, but for Michigan businesses, including some 100,000 that no longer will have to pay the repealed Michigan Business Tax, it’s a $1.65 billion cut. The difference is being made up with $1.42 billion in additional income taxes, which includes applying the tax to pensions and other retirement income.” [Bridge Magazine, 5/25/11]

 

Seniors Would See Large Increase – Almost As Much As Millionaires. “A retired couple born after 1952 with more than $50,000 in income, including $48,000 in pension benefits, who now receive the full $1,200 refundable homestead property tax credit.” would see one of the largest tax increases according to the study. “Their taxes will be $3,130 higher in 2013 than they would have been had the tax law not been changed, the analysis found. They will pay 4.25 percent on all their pension income, and because the income threshold for the homestead credit declines from $82,650 to $50,000, they lose the whole thing. Those with taxable incomes of $1 million would take a larger hit, but not by much — $3,500, because the income tax rate will stay at 4.25 percent instead of dropping to 3.9 percent.” [Grand Rapid Press, 7/13/11]

 

“No foul on billboards chiding Gov. Snyder for higher taxes.” “Democratic gubernatorial candidate Mark Schauer, a former congressman, has made attacks on Snyder’s tax record a centerpiece of his campaign. In 2011, Snyder pushed through sweeping changes to Michigan’s business tax system, scrapping the Michigan Business Tax and replacing it with a 6 percent corporate income tax. It was calculated to be a $1.7 billion business tax cut in 2012-2013 in analysis by the nonpartisan Michigan House Fiscal Agency. To replace much of that revenue, Snyder backed legislation that raised taxes on individualsby about $1.4 billion. Its chief components and their calculated impact in 2012-2013:

 

  • Freeze the state income tax at 4.25 percent. It had been scheduled to fall to 3.9 percent by 2015. That was calculated by the House Fiscal Agency to raise $223 million in taxes in 2012-2013.
  • Lower deductions for pensions for those born 1946 or after, adding an estimated $343 million in taxes.
  • Reduce low-income tax credits from 20 percent to 6 percent, adding $261 million in taxes.
  • Lower homestead property tax credits, raising taxes by $270 million. [Bridge Magazine, 5/15/14]

 

Randy Edding, born in 1957 (57 years old), is taxed on all of his 65k/year in pension income from private pensions(Tier 3). [Michigan.gov, Income Tax for Retirement Benefits, Tax Year 2013]

 

Under the Previous Pension Law Randy’s pension Would Have Been Fully Exempt.

Private Pensions: Private pension subtractions are limited to $45,842 on a single return and $91,684 on joint returns for tax year 2011. [Michigan Department of Treasury, Pension and Retirement Benefits, 2011]

 

Video: RICK SNYDER

RAISED PROPERTY TAXES

 

Audio:“I would show him how he raised property taxes on seniors.”

 

 

 

Loss of Homestead Credit Would Lead to Hire Taxes for Seniors. “The loss of the homestead credit for an estimated quarter-million households means a net tax increase even for senior couples unaffected by application of the income tax to pensions. A couple in which the older partner was born in the years 1946 to 1952 (assumed to be age 66 in the example), and who receives $30,000 in pension income and $22,000 in Social Security would remain tax-free. With the loss of $430 in homestead credits, they would still see a loss in income.” [Grand Rapid Press, 7/13/11]

 

AARP to Lawmakers: Use Surplus to Give Back to Seniors. AARP Michigan estimates that the combination of the state pension tax, the elimination of the $2400-per-senior tax exemption, and the increase in property taxes because of changes in the homestead tax exemption has cost Michigan seniors more than $650 million per year. [AARP, 2/3/14]

 

50-something Michigan pensioners take biggest hit under new tax plan. Taking the biggest shot? A retired couple born after 1952 with more than $50,000 in income, including $48,000 in pension benefits, who now receive the full $1,200 refundable homestead property tax credit. Their taxes will be $3,130 higher in 2013 than they would have been had the tax law not been changed, according to the new analysis by the House Fiscal Agency. [Bridge Magazine, 7/12/11]

 

Modify Homestead Property Tax Credit (Page 5)

http://www.house.michigan.gov/hfa/PDF/Alpha/TaxpayerExampleMemo.pdf

 

Seniors Would See Large Increase – Almost As Much As Millionaires. “A retired couple born after 1952 with more than $50,000 in income, including $48,000 in pension benefits, who now receive the full $1,200 refundable homestead property tax credit.” would see one of the largest tax increases according to the study. “Their taxes will be $3,130 higher in 2013 than they would have been had the tax law not been changed, the analysis found. They will pay 4.25 percent on all their pension income, and because the income threshold for the homestead credit declines from $82,650 to $50,000, they lose the whole thing. Those with taxable incomes of $1 million would take a larger hit, but not by much — $3,500, because the income tax rate will stay at 4.25 percent instead of dropping to 3.9 percent.” [Grand Rapid Press, 7/13/11]

 

“No foul on billboards chiding Gov. Snyder for higher taxes.” “Democratic gubernatorial candidate Mark Schauer, a former congressman, has made attacks on Snyder’s tax record a centerpiece of his campaign. In 2011, Snyder pushed through sweeping changes to Michigan’s business tax system, scrapping the Michigan Business Tax and replacing it with a 6 percent corporate income tax. It was calculated to be a $1.7 billion business tax cut in 2012-2013 in analysis by the nonpartisan Michigan House Fiscal Agency. To replace much of that revenue, Snyder backed legislation that raised taxes on individualsby about $1.4 billion. Its chief components and their calculated impact in 2012-2013:

 

  • Freeze the state income tax at 4.25 percent. It had been scheduled to fall to 3.9 percent by 2015. That was calculated by the House Fiscal Agency to raise $223 million in taxes in 2012-2013.
  • Lower deductions for pensions for those born 1946 or after, adding an estimated $343 million in taxes.
  • Reduce low-income tax credits from 20 percent to 6 percent, adding $261 million in taxes.
  • Lower homestead property tax credits, raising taxes by $270 million. [Bridge Magazine, 5/15/14]

 

Video: RICK SNYDER

CUT $1 BILLION FROM EDUCATION

 

Audio: “I would tell Rick Snyder that his billion dollar education cut is hurting our economy.”

 

 

 

 

Snyder Cut Over a $1 Billion from Education:

  • K12 cut: $930,663,300
  • Community college cut: $12,000,000
  • Higher education cut: $216,000,100
  • TOTAL education cut: $1,158,663,400 [FY 2011-12 SCHOOL AID BUDGET]

 

Snyder Cut $1 Billion from School Aid Fund. “Initial reaction to Gov. Rick Snyder’s budget proposal was generally positive – mostly because Michigan is in better financial shape than it was 12 months ago. But the $14.7 billion education package laid out Thursday relies heavily on incentive-laden funding some say is unfair. And it fails to fully restore funding cuts made last year, when Snyder trimmed more than $1 billion from Michigan’s School Aid Fund.”[Detroit News, 2/10/12]

 

Snyder’s Final Budget Cut K-12 Education Funding by 2.2 Percent and Universities by 15 Percent. “Critics said the budget makes overly painful cuts to public schools, universities, local governments and key services. School districts saw funding cut by 2.2 percent, which has led to widespread teacher layoffs. Universities saw their state funding cut 15 percent, and local governments will see about $100 million less.” [Detroit News, 6/21/11; Associated Press, 6/22/11]

 

Snyder Admitted He Used the “Cut Model” for Schools in First Budget. In an interview with The Associated Press, Snyder said he thinks the state will be “finished with the cut model” for schools in 2012-13, after they endured some major reductions in the current fiscal year. Public schools were cut more than 2 percent, or about $1 billion, and the state’s universities absorbed 15 percent cuts. [Gov. Rick Snyder says school cuts may be over, AP, 12/20/11]

 

Education Is the Key to Better Jobs. “The message is clear—more education opens the gateway to better, higher-paying jobs.” [Brookings Institution, 9/17/12]

 

 

 

Video: RICK SNYDER

GAVE ADMINISTRATION OFFICIALS HUGE PAY RAISES

 

Audio:“If I could talk to Rick Snyder, I’d say it’s not fair to raise our taxes while his administration officials are getting huge pay raises.”

 

 

“State’s top investment officials get giant pay raises.” The State of Michigan quietly increased the salaries of its top investment officials in the Treasury Department by more than 80% this year, saying it was too difficult to attract and keep qualified people under the former pay rates. Jon Braeutigam, the state’s chief investment officer, got a 90% pay raise to $333,000 a year from $175,000, department spokesman Terry Stanton confirmed Friday. Treasury’s two senior directors of investment – Robert Brackenbury and Greg Parker – received 82% pay increases, boosting them from $128,000 to $233,000 a year. [Detroit Free Press, 11/24/13]

 

Snyder Taxed Retirement Income. “Gov. Rick Snyder signed the biggest tax overhaul in Michigan in 17 years that finances the elimination of the Michigan business tax with a bundle of changes to the personal income tax. Overall, it amounts to a $220 million net cut in tax revenues to state coffers, but for Michigan businesses, including some 100,000 that no longer will have to pay the repealed Michigan Business Tax, it’s a $1.65 billion cut. The difference is being made up with $1.42 billion in additional income taxes, which includes applying the tax to pensions and other retirement income.” [Bridge Magazine, 5/25/11]

 

Seniors Would See Large Increase – Almost As Much As Millionaires. “A retired couple born after 1952 with more than $50,000 in income, including $48,000 in pension benefits, who now receive the full $1,200 refundable homestead property tax credit.” would see one of the largest tax increases according to the study. “Their taxes will be $3,130 higher in 2013 than they would have been had the tax law not been changed, the analysis found. They will pay 4.25 percent on all their pension income, and because the income threshold for the homestead credit declines from $82,650 to $50,000, they lose the whole thing. Those with taxable incomes of $1 million would take a larger hit, but not by much — $3,500, because the income tax rate will stay at 4.25 percent instead of dropping to 3.9 percent.” [Grand Rapid Press, 7/13/11]

 

Loss of Homestead Credit Would Lead to Hire Taxes for Seniors. “The loss of the homestead credit for an estimated quarter-million households means a net tax increase even for senior couples unaffected by application of the income tax to pensions. A couple in which the older partner was born in the years 1946 to 1952 (assumed to be age 66 in the example), and who receives $30,000 in pension income and $22,000 in Social Security would remain tax-free. With the loss of $430 in homestead credits, they would still see a loss in income.” [Grand Rapid Press, 7/13/11]

 

AARP to Lawmakers: Use Surplus to Give Back to Seniors. AARP Michigan estimates that the combination of the state pension tax, the elimination of the $2400-per-senior tax exemption, and the increase in property taxes because of changes in the homestead tax exemption has cost Michigan seniors more than $650 million per year. [AARP, 2/3/14]

 

50-something Michigan pensioners take biggest hit under new tax plan. Taking the biggest shot? A retired couple born after 1952 with more than $50,000 in income, including $48,000 in pension benefits, who now receive the full $1,200 refundable homestead property tax credit. Their taxes will be $3,130 higher in 2013 than they would have been had the tax law not been changed, according to the new analysis by the House Fiscal Agency. [Bridge Magazine, 7/12/11]

 

Video: TELL RICK SNYDER

WE COUNT, TOO

 

Audio: “Rick Snyder – It seems like you only care about the wealthy … not us.”

 

Paid for by the Democratic Governors Association. Authorized by Mark Schauer.