(AP) -- Michigan Governor Rick Snyder has announced a new plan to tax retirees' income up to age 67.
The Republican governor had wanted to tax all retirement income the same as normal income in a bid to raise $900 million to help pay for a business tax cut, but many lawmakers balked after seniors made their displeasure clear.
Snyder has been working to reach a compromise with top Republican lawmakers, and they joined him at his announcement Tuesday.
Michigan currently exempts all Social Security and public pension benefits from income taxes, as well as up to $45,120 a year for a single return and $90,240 on a joint return in private retirement and pension benefits, a cap that increases annually with inflation.
Democrats have opposed the increases.
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