Retirees see pension tax as attack on middle class

LANSING, Mich. (AP) — Republican Gov. Rick Snyder is drawing recall threats and angry protests over his attempt to do what no Michigan governor has tried in more than 40 years: Tax the pensions and 401(k) incomes of millions of seniors.

The move has retirees protesting at the Capitol and vowing to make re-election difficult for Snyder and lawmakers who go along.

Democrats oppose the move, and even some GOP lawmakers are casting about for an alternative to avoid raising taxes on a powerful interest group.

Snyder says Michigan can’t afford the $900 million it loses to some of the nation’s most generous senior tax breaks, and seniors are pushing the tax burden onto younger residents.

Retirees say it’s unfair to make them pay more so Snyder can cut business taxes by $1.7 billion.