THE PETITION:

"We join Joe Kent in asking Oakland County’s State Senators and State Representatives to pledge support for the repeal of Michigan’s 2012 Retirement Tax and the reinstatement of pre-2012 eligibility for Michigan’s Homestead Property Tax Credit."

THE BACKGROUND:

Starting in 2012, retirement income from sources such as 401-K plans and IRAs became taxable by the State of Michigan after minimum thresholds are crossed. Before 2012 these income sources were fully EXEMPT from Michigan taxes in most cases.

Also beginning in 2012, new rules made it impossible for most Michigan taxpayers to qualify for the Homestead Property Tax Credit. This credit is a rebate of the property tax that you pay on your home. Many of you qualified for the rebate under pre-2012 rules because your property taxes were high relative to your income. The new rules pulled the rug out from under you.

Both of these 2012 changes were wrong-headed, misguided and immoral.

If you live in Oakland County, please sign the petition either on this web site or on paper. But that’s just the beginning. Help us get others to sign too. Tell your families, friends and neighbors. Contact me by phone or email if you’re willing to knock on doors. I’ll supply you with petitions, address lists and literature.

Please help me restore fairness to Michigan’s taxpayers.

Thank you,

JOE KENT

FREQUENTLY ASKED QUESTIONS:

So Joe, why are you doing this? I’m a tax professional based in Lake Orion for more than two decades. Many of my clients depended on the retirement income exemption and, or, the Homestead Property Tax Credit. The new taxes and rules created extreme hardships. I’m tired of taxpayers being disrespected and taken for granted. That goes double for people on fixed incomes. They’ve supported Michigan throughout their working years. That should be enough.

Shouldn’t retired people have to pay income tax just like everyone else? That’s the wrong question. The fact is that in Michigan they didn’t. As a result, plans were made and household budgets were set. The new tax pulled the rug out from under people who in many cases are living on fixed incomes. But that’s not all. Taxing retirement income is an incentive for people to LEAVE MICHIGAN WHEN THEY RETIRE.

How would the State of Michigan make up the money if the tax is repealed and the Homestead Property Tax Credit is restored? Unfortunately for all concerned, that question should have been asked BEFORE the laws and rules were changed. There needed to be an open public discussion that informed people of what was under consideration. And here’s another consideration. When did it become the responsibility of retirees and people paying exorbitant property taxes to solve Michigan’s budgetary challenges? Our governor and state legislature have a duty to set spending priorities that force the state to live within its means. Michigan residents make hard choices for their own households while sitting at their kitchen table. Government shouldn’t be any different.

Why didn’t we hear about this legislation when it was being passed? Politicians didn’t want you to, and reporters had a tough time putting it in plain English. Taxes can be hard to understand and even harder to explain. The government likes it that way.

Why just Oakland County? Because it’s the most politically powerful county in Michigan. A statewide petition drive could cost millions of dollars. But if as few as five or six of Oakland County’s fourteen state senators and representatives lock arms on this issue, they’ll have tremendous leverage in Lansing.

What is the Michigan Taxpayer Coalition? MTC is a political action committee that I formed to be an advocate for taxpayers who have no one to stand up for them. I funded it myself. Contributions are welcome. Checks can be made payable to “Michigan Taxpayer Coalition” and mailed to 5195 Hosner Road, Oxford, MI 48370.