Source: Sherman Publications

Taxing pensions risky business

May 04, 2011

Dear Editor,

In an effort to placate hesitant lawmakers, Governor Snyder came up with a compromise of not taxing pensions for people more than 67 years of age and giving a tax break of $20,000 for those under and others full taxation.

But what the governor didnít say and what will happen if pensions are taxed is that companies and government that provide pensions will not do a data search to determine those more than 67 years old to determine who will get taxed or not taxed.

What will happen is those of us on pension will pay the full 4.35 percent for the entire year and get a refund the following year. If you think that your pension will not get taxed if you are more than 67 years of age, you are fooling yourself.

Shirley J. Burroughs