Michigan House tackles bills taxing pensions, limiting benefits of public employees

The Detroit Free Press reports:

The state House began taking action Tuesday on a series of bills that would limit public employee health and retirement benefits, tax their pensions, limit school superintendent salaries and restrict school board elections to November.

The bills are politically linked to Democrats’ efforts to gain Republican votes for a tax increase to balance the state budget. Republican leaders have said they won’t consider a tax hike without agreements to reduce the cost of public employees, including teachers.

Granholm has insisted on a tax increase to go along with budget cuts and government reforms.

The House Committee on Oversight and Investigations approved three bills that would make public employee pensions subject to the state income tax – they are now exempt – and prohibit retired state workers from collecting both pension benefits and a salary if they go back to work for the state.

Class conflict in Michigan.The special class versus the taxpayers.