Michigan Gov. Gretchen Whitmer proposes a repeal of retirement tax

‘Repealing the retirement tax will put money back in the pockets of retirees’

FILE - Michigan Office of the Governor, Michigan Gov. Gretchen Whitmer addresses the state during a speech in Lansing, Mich. on Oct. 8, 2020. Jurors on Friday, April 7, 2022, acquitted two men and deadlocked on two others accused of plotting to abduct Whitmer in 2020. (Michigan Office of the Governor via AP, File) (Uncredited)

LANSING, Mich.Michigan Gov. Gretchen Whitmer is proposing a repeal of the retirement tax.

She said that it’s “just wrong” that retirement income for people born after 1946 is taxed.

In 2011, Michigan’s tax code was rewritten to put a retirement tax in place. She said she was serving in the legislature at the time and “fought hard against this new tax on retirees.”

Whitmer said repealing the retirement tax would save 500,000 households an average of $1,000 a year. She said her proposal would exempt public pensions and restore deductions for private retirement income, including private-sector pensions, withdrawals from individual retirement accounts (IRA), and the portion of a 401k account that is subject to an employer match.

“I will continue to fight for Michiganders to keep their hard-earned dollars. Repealing the retirement tax will put money back in the pockets of retirees and boost our economy. And, most importantly, it’s the right thing to do,” Whitmer said.

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Read her full letter below:

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Kayla is a Web Producer for ClickOnDetroit. Before she joined the team in 2018 she worked at WILX in Lansing as a digital producer.