A state House committee is debating a tax-reform package that includes eliminating the state’s business tax and replacing its revenues with a corporate income tax and taxing pensions. Governor Snyder says he wants a state budget in place by the end of May.
However, fierce divisions over how and where to reform taxes – especially over whether to tax pensions – are slowing negotiations.
Snyder’s pleased with the progress on the budget so far:
“Things are going reasonably well in terms of that process. And we’re working on a very fast time frame. We’re well ahead of the way things traditional done in past years. And we’ll still on a path to get fundamental reform done."
Snyder says he's not put off by the harsh criticism that his budget and tax plans have generated:
“That’s part of the legislative process. That’s part of democracy. But as a whole, I believe the framework we put out there will go ahead and if anything I hope it could be an improved product with the good dialogue we’re having today.”
Some Senate Republicans have said they will not vote for any pension tax. And many Democrats are upset, claiming they have been locked out of negotiations altogether.
