Great Lakes Wire

Michigan state Rep. Kathy Schmaltz (R-Jackson) has introduced legislation aimed at reducing taxes for retired public employees.

HB 4578 would eliminate taxes on pension benefits paid out to retired corrections officers. This legislation is intended to address the previous exclusion of specific corrections officers that was present in a bill passed earlier this year.

"The corrections officers in our state prisons have grueling, high-pressure jobs guarding our prisons and protecting our communities," Schmaltz said in a recent news release on her website. "The men and women who dedicate their careers to this work deserve our unwavering appreciation for their dedication, resilience, and commitment to maintaining order, safety, and rehabilitation."

If the bill passes successfully, it will expand coverage to include retirees of the Michigan Department of Corrections, ensuring that they receive the benefits of the proposed tax reduction, the release said. The current plan includes only previous corrections employees who were employed by a county sheriff, along with firefighters and other state officials.

Some critics have voiced their concerns with regard to the bill, arguing that it is unfair to other individuals.

“The problem with exceptions is that they remind us that government power is accrued and validated by the ability to play favorites and determine winners and losers,” John Grether, professor of Practice at the Kettering University School of Management, said in a recent report from The Center Square.

HB 4578 has been referred to the House Tax Policy Committee, the news release said.

Schmaltz was elected in November 2022 to represent the people of the 46th District in the Michigan House, her legislative biography said. She represents the city of Jackson, Leoni and Blackman townships, and parts of Summit and Grass Lake townships in Jackson County, along with the city of Chelsea and Sylvan Township in Washtenaw County.