Attack Ad Shows Democratic Party is Out of Touch

A Democratic-sponsored ad leads with a message that decries Governor Rick Snyder of Michigan for removing most tax exemptions from pension benefits and the Homestead Property Tax Credit, while changing the Michigan Business Tax into a flat 6% tax on profits.   These are valid criticisms, and appeal to the Democratic base, but the ad features a retiree living on property valued at $716,000 and receives over $120,000 a year for his household who claims to be scrambling to make ends meet because of the governor's war on pensioners. 

I find it hard to feel sorry for such a person, whose political bent normally would feel that higher taxes are our friend, when I personally know other pensioners and social security recipients that are barely making ends meet and barely able to afford housing while receiving household income under the poverty level.  These are folks we should be concerned about rather than some upper class income retirees claiming hardship.  But the hardship this man belly-aches about would be a moot point if he wasn't actually making so much each year and living on a three-fourths of a million dollar estate.

For let's review the two taxes he complains about: 

1) The Homestead Property Tax Credit still applies if your real property is valued at $135,000 or less and your household income is less than $50,000.  The poor and much of the middle class can still qualify for this benefit.

2)  The Pension taxes he complains about may not even kick in unless he was born before 1946, this Michigan link shows such taxes will not kick in for those recipients unless they receive over $47,000 (twice that if he files jointly with his wife).  They still get up to $40,000 of this income exempt if he was born between 1946 and 1952.  If he was born after that, then he has retired at 61 or younger.

So the Democrats are listening to this wealthy person cry about their taxes being raised, which is precisely the criticism they have about the Republicans and their wealthy friends.  Interesting for all those who actually believe the Democrats care about the poor and middle class, when they often cater more to the rich than their opponents.

GRAND RAPIDS, Mich. – The Republican Governors Association is crying foul, accusing Democrats of not checking the facts before their latest ad in Michigan’s race for governor.

The ad, called ‘Seniors’, features former teacher, Rocky Gonet, who slams Gov. Snyder for giving tax breaks to businesses, while hitting retirees with a pension tax. Gonet then claims he’s scrambling to make ends meet.

That’s where the RGA has a problem, because according to the group, Gonet’s household income is more than $120,000.

Gonet blames the problem on legislation passed in 2011, which removed most tax exemptions on pension income and eliminated the homestead property tax credit.

As part of the overhaul, the Michigan Business Tax was replaced with a 6-percent tax on the profits of thousands of companies doing business in Michigan.

The RGA estimates Gonet is receiving an annual pension of $42,000. That number was reached using a pension estimate calculator found on the Office of Retirement Services webpage.

It’s based on Gonet’s years of service and that he was making more than $85,000 as a teacher in the Ann Arbor school district.

Back in 2006, through a freedom of information request, the Ann Arbor News also found Gonet’s wife, Marcia Schaffer, was also making $83,000 as a teacher in the same school district.

The RGA also points to real estate online database, Zillow, which estimates Gonet’s home is valued at more than $716,000.

Sabrina Singh, with the Democratic Governors Association, made the following statement to FOX 17:

“Rick Snyder’s Republican hatchet men may think it’s OK to release satellite photos of a senior citizen’s private home for speaking out against his anti-middle class policies, but it’s not. Snyder raised seniors’ property taxes and taxes on retirement to give tax cuts to businesses, even if they ship jobs overseas. He’ll be punished for it by voters in November.”

http://fox17online.com/2014/08/18/gop-group-calls-foul-on-democrat-...

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I'm for everyone paying taxes, if I have to pay. I don't care how poor they are. They should pay something. For to long senior's have been exempt for paying state income tax now that they are required to help pay for all of the benefits provided by Government some of them are whining. The bad part about the pension tax is that those born in 1945 or before are exempt. That is a total load of crap. Everyone should pay.

I can sympathize with what you say Willy, up to a point. Imho, I think senior citizens should be exempt from any and all taxes imposed on them all their lives. I respectfully digress, that these seniors, irregardless of their current financial status, be totally exempt and free of their tax burdens for life, starting at age 60 or so. It's a long journey to reach that age healthy and wealthy or poor. I say give'em a break, taxed enough already, or the TEA Party slogan. Jmo. The way things stand now, they chase you over the grave marker for taxes not only to the death, but relatives that survive long afterwards, and that my friend, is just wrong and warped.  

Welcome to the Ludington Torch, Ron, and thanks for the supplemental information on Rocky, who's own prosperity is forcing him into paying taxes-- because of those lousy tax and spend Republicans, LOL. 

I've got my own gripes with some of Governor Snyder's actions and policies, but the Democrats are running on actions and policies that are like Jenny Granholm on crack cocaine. 

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