RightMi- J Gillman~Governor needs to consider one other..MiFairTax

If you are going to do it...

By JGillman, Section News
Posted on Fri Feb 12, 2010 at 09:13:17 AM EST

At least pay attention to the Proposals already on the table. In fact take a look at a study of one such proposal already provided by the Hillsdale college scholars.

Governor Granholm has been continuing her path of raising taxes on Michigan as if no one is paying attention any longer.  Her most recent budget includes additional spending, (more than this current fiscal year) and she has attempted to manipulate the revenue stream so that the actual tax increase on the citizens is hidden.  

Her proposed small shift downward in the sales tax looks good on its face, but she hopes to expand the things taxed to services in hopes of generating the needed $2 Billion plus in revenue to cover that spending.  Though she claims it is revenue neutral by 2013, how well can we trust the judgment of the most fiscally imprudent executives the state has ever seen?

Further...

The Mackinac Center for Public Policy's Michael LaFaive says

""Revenue-neutral or not, lawmakers should not be restructuring the state's tax system before adopting significant spending reforms -- reforms more fundamental than the half-hearted measures the governor has proposed so far."

Indeed, the FIRST thing that needs to be addressed is spending.  It needs to be adjusted DOWN to a point where there is not a fear of revenue shortfalls creating a bigger problem.  And frankly, her claim that the economy shifting from sales to services begs the change, though partially correct, is still short on providing an excuse to further increase the tax load on Michigan citizens.

The spending first needs to STOP.. And then..

The governor needs to consider one other possibility.  If she so desperately wants to get a tax on services, she should consider the MIFairTAX plan..  Lobby to have the legislature put it before the people.  At least IT provides relief for the permanent residents and is a better mechanism for shifting the burden to transient and otherwise undocumented income.  It hits those who use Michigan services and infrastructure, but pay no taxes through the current system. Further it provides a friendlier and STABLE business environment.  A predictable climate where planning can actually mean something...full article here

Tags: Michigan, Granholm, Taxes, Mackinac Center, Fair Tax, MIFAIRTAX (all tags)