There’s a split emerging between Gov. Rick Snyder and Republican leaders in the Legislature over cutting taxes.
GOP leaders say the new legislative session should include rollbacks in income and pension taxes.
Snyder says if lawmakers want to cut taxes, they should also identify where they would cut spending on services.
“The big question to ask is what are you going to otherwise cut or where are you going to get the revenue to replace that,” said Snyder, “so I’m open-minded, but people need to answer the second part of the question, also.”
The pension tax was one of Snyder’s first budget reforms after he took office in 2011. He says that was only fair to people who were paying taxes on 401(k)s and other retirement plans.
“So I think it’s really important that people recognize what went out and what came in and what put in has actually helping a broader base of Michiganders that really need that benefit,” he says.
Snyder says Michigan’s current tax system encourages younger people to remain in the state.
He will present a budget plan next week for the coming fiscal year.