AARP Fights Retirement Tax

The AARP joined with two other senior-citizen groups to file a friend of the court brief to the Michigan Supreme Court last week, arguing that the state’s new law taxing retirement income is unconstitutional.

Gov. Rick Snyder, who proposed the law to help balance the upcoming fiscal 2012 budget, has already asked the court to review it.

Oral arguments are scheduled for Sept. 7.

The new law would impose an income tax on most retirement income, including pensions. Retirees who were born before 1946 would continue to enjoy an exemption.

The brief was filed by the AARP along with the State Employees Retirement Association and the National Active and Retired Federal Employees Association.

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