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Whitmer announces Tax Cut
Re: Whitmer announces Tax Cut
So here's a question I don't know the answer to.
Are pension taxes a double tax?
Did retirees pay taxes on upcoming pensions while they are working?
I can understand real estate brokers and other self employed people being opposed to pensions being tax free because you are not going to get the proceeds from your IRA or SEP IRA or maybe a solo 401(k) tax free when you start drawing it out.
And your possibility disgruntled that others will.
Are pension taxes a double tax?
Did retirees pay taxes on upcoming pensions while they are working?
I can understand real estate brokers and other self employed people being opposed to pensions being tax free because you are not going to get the proceeds from your IRA or SEP IRA or maybe a solo 401(k) tax free when you start drawing it out.
And your possibility disgruntled that others will.
Life is not a dress rehearsal. This is it. There's no going back, and we can only go forward before we run out of runway.
- craig11152
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- Location: Ann Arbor
Re: Whitmer announces Tax Cut
My limited research suggests the employer contribution year to year is not considered income for that year.Round Six wrote: ↑Sun Jan 29, 2023 9:37 amSo here's a question I don't know the answer to.
Are pension taxes a double tax?
Did retirees pay taxes on upcoming pensions while they are working?
I can understand real estate brokers and other self employed people being opposed to pensions being tax free because you are not going to get the proceeds from your IRA or SEP IRA or maybe a solo 401(k) tax free when you start drawing it out.
And your possibility disgruntled that others will.
I no longer directly engage trolls
- MWmetalhead
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Re: Whitmer announces Tax Cut
Correct; it is not a double tax. Moreover, employer pension contributions are deductible expenses for corporate income tax purposes.
Pensioners only pay taxes on pension income once withdrawals are taken (just like a traditional 401K or 403B plan, to echo what Round Six wrote).
Pensioners only pay taxes on pension income once withdrawals are taken (just like a traditional 401K or 403B plan, to echo what Round Six wrote).
Morgan Wallen is a piece of garbage.
Re: Whitmer announces Tax Cut
Thanks.craig11152 wrote: ↑Sun Jan 29, 2023 10:06 amMy limited research suggests the employer contribution year to year is not considered income for that year.
The way I look at it, the pension tax cut is up to the current and future pensioners. If they play complacent thinking just because Whitmer said it will happen, then it probably never will.
If however those standing to benefit from the tax cut become rabble rousers, make some noise and keep bugging those in Lansing, it probably will happen.
Our governor is now lame duck. She can make all sort of promises and suffer little consequence if she don't follow through. Both my state senator and state rep are starting their first term. And both promised the pension tax cut while campaigning. Failure for the tax cut to be enacted by 2026 may not go as well for them.
Life is not a dress rehearsal. This is it. There's no going back, and we can only go forward before we run out of runway.
Re: Whitmer announces Tax Cut
And Florida has no income tax!MWmetalhead wrote: ↑Sun Jan 29, 2023 7:16 amThanks.I like your plan (i).
There are states where such laws currently exist relative to property taxes. In the following states, seniors pay no property taxes on their homestead (a few on this list may surprise you):
Alabama
Alaska
Florida
Georgia
Hawaii
Mississippi
New Hampshire
New York
South Carolina
South Dakota
Texas
Washington
I'm not willing to go *that* far in terms of tax relief for seniors, but I think the first $150,000 to $200,000 of normally taxable value for primary residences owned by seniors should be tax exempt.
Another way to accomplish this would be to retool the homestead property tax credit that can be claimed by Michigan income tax return filers to extend much more generous benefits to seniors.
Re: Whitmer announces Tax Cut
The Democrats want to send out $180 to PREVENT the rate from automatically dropping from 4.25% to 4.05%. A married couple with a modest taxable income of $90,000 would see a one-time check/direct deposit of $180. Meanwhile, with a rate reduction, they would have their tax liability reduced by that amount each year.
Voting for Trump is dumber than playing Russian Roulette with fully loaded chambers.
**This space lives rent-free in BMW's head**
**This space lives rent-free in BMW's head**
Re: Whitmer announces Tax Cut
So what do you recommend we do?
You're never too old to learn something stupid.
Re: Whitmer announces Tax Cut
Let the automatic tax cut happen.
Voting for Trump is dumber than playing Russian Roulette with fully loaded chambers.
**This space lives rent-free in BMW's head**
**This space lives rent-free in BMW's head**
- MWmetalhead
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Re: Whitmer announces Tax Cut
Depends what personal and dependent exemptions are claimed, but yes, the reduction in tax liability yearly would be a positive.married couple with a modest taxable income of $90,000 would see a one-time check/direct deposit of $180. Meanwhile, with a rate reduction, they would have their tax liability reduced by that amount each year.
I certainly agree that the $180 one-time rebate is underwhelming.
The 0.2% marginal income tax rate reduction that is supposed to kick in is also underwhelming, but it would be better for many than a simple one-time rebate.
The Democrats' proposal is certainly lame, but I've yet to see any meaningful competing proposal from Republican leadership this legislative session. I liked the legislation that passed last year, which unfortunately, was vetoed by Whitmer. Dixon should've pounced on that fact much more aggressively, especially in campaign ads.
Morgan Wallen is a piece of garbage.
- MWmetalhead
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Re: Whitmer announces Tax Cut
The state sales tax there, unlike Michigan, applies to both goods and services. In Michigan, the sales tax only applies to goods.And Florida has no income tax!
Also, many counties in Florida levy their own sales tax, and they also have the ability to levy fuel taxes, too.
Given the very high amount of tourism in Florida, relying very heavily on sales taxes makes a lot of sense.
Morgan Wallen is a piece of garbage.
Re: Whitmer announces Tax Cut
I was specifically referencing the bottom line taxable income after claimed exemptions (line 16 on MI-1040).MWmetalhead wrote: ↑Tue Feb 07, 2023 6:59 amDepends what personal and dependent exemptions are claimed, but yes, the reduction in tax liability yearly would be a positive.married couple with a modest taxable income of $90,000 would see a one-time check/direct deposit of $180. Meanwhile, with a rate reduction, they would have their tax liability reduced by that amount each year.
I certainly agree that the $180 one-time rebate is underwhelming.
The 0.2% marginal income tax rate reduction that is supposed to kick in is also underwhelming, but it would be better for many than a simple one-time rebate.
The Democrats' proposal is certainly lame, but I've yet to see any meaningful competing proposal from Republican leadership this legislative session. I liked the legislation that passed last year, which unfortunately, was vetoed by Whitmer. Dixon should've pounced on that fact much more aggressively, especially in campaign ads.
Voting for Trump is dumber than playing Russian Roulette with fully loaded chambers.
**This space lives rent-free in BMW's head**
**This space lives rent-free in BMW's head**
Re: Whitmer announces Tax Cut
A $180 check is very underwhelming indeed. I'll take it though. Breaking it down that is like about .49/day.
Last edited by Taco on Tue Feb 07, 2023 11:04 pm, edited 1 time in total.
Woe to you, oh earth and sea
For the Devil sends the beast with wrath
Because he knows the time is short
Let him who hath understanding reckon the number of the beast
For it is a human number
Its number is six hundred and sixty-six
For the Devil sends the beast with wrath
Because he knows the time is short
Let him who hath understanding reckon the number of the beast
For it is a human number
Its number is six hundred and sixty-six
- ZenithCKLW
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- MWmetalhead
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Re: Whitmer announces Tax Cut
It's damn near tree fiddy!
(Hope the Loch Ness Monster doesn't attack us now.
South Park reference.)
(Hope the Loch Ness Monster doesn't attack us now.
South Park reference.)
Morgan Wallen is a piece of garbage.
- craig11152
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