November 26, 2009

Associated Press: Washtenaw County lawmaker calls for tax hikes

Associated Press: Washtenaw County lawmaker calls for tax hikes

A veteran state lawmaker and Democratic gubernatorial candidate from Washtenaw County proposed swapping Michigan's flat income tax rate for a graduated one, eliminating a business tax surcharge and some business tax breaks, and lowering the sales tax rate while extending it to services.

The massive tax overhaul would raise $6.5 billion more for state coffers ...

My comment:
A higher Income tax in MI will chase business away because increasing income tax increases manufacturing cost added to product, the very reason business is leaving and why it takes exemption of MBT to come here, thus less business, less Michigan and then what higher taxes again?  Time to change the entire tax structure and make it job growth oriented. 
It is a Michigan jobs incentive to:
Replace income and business taxes with the FairTax — the sales tax ...
If you change to a tax structure that will create jobs, that will create spending, which will create more jobs, which will create less need for taxing, thus lowering the sales tax percentage.  If the Federal Level would adopt the FairTax Plan,,, and began Constitutional spending, it may be possible for our sales tax rate to drop below today's rate, with the MIFairTax having already removed income tax, the MBT tax, personal property tax and hopefully school property tax moved back to local control or onto sales tax removing it from the general budget by the Homestead tax relief on homestead school taxes refund being eliminated as an expenditure.
This process of taxing more causing less will end badly.  We fought a Revolutionary War on the very same situation.  Unemployment in Michigan is a lot higher the 20%.  Reality will not be swayed by propaganda very much longer.
Senator Smith said it well, '"We created a nightmare," Smith says of the way the state has handled its financial shortfalls for the past decade. "If we stay in that trench, we're going to stay in the bottom" among the 50 states.'
We must think of Michigan as a Sovereignty onto itself fiscally.  We make a wrong turn here, Michigan will own a darkness never experienced before.  choose wisely, Michigan can lead this Nation of Countries back to the American Dream.
R. George Dunn

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