A2: State Economy

Writing in the Toledo Blade, columnist Jack Lessenberry explores the issue of tax exemptions that Michigan gives to its state retirees, among others. “Lynn Borset, a thoughtful reader in Ann Arbor, told me she understood that Michigan retirees’ income was entirely exempt from state taxes. If so, she asked, wasn’t this a serious revenue loss for the state, one that is likely to get worse as the population ages? I turned to an expert – Michigan State University’s Charley Ballard, a professor of economics and the author of Michigan’s Economic Future. His answer was eye-popping: … ‘Michigan completely exempts the pensions of state government employees, and local government employees and federal employees and military retirees.’” [Source]