Board of Canvassers Approves Ballot Language

PRESS RELEASE

from State Representative Jack Hoogendyk

December 19, 2007

Board of Canvassers Approves Ballot Language for Part-time Legislature

Lansing - Today, the State board of canvassers approved the form of a petition to put a part-time legislature amendment to the state Constitution on the ballot.  "This is something I have been working toward since first coming to Lansing", said State Representative Jack Hoogendyk-R Texas Township.  "I am very pleased with the language of this proposal because it includes the essential elements of making the legislature more effective and efficient."

Ballot language includes the following provisions:

• Salary for legislators is cut by 50%. Legislators receive reimbursement for actual travel expenses only.


• Legislators receive health care benefits only while in office.


• Legislative session starts on the second Wednesday in March and must finish by noon on July 1st.


• Lawmakers may attend committee meetings and vote from their districts via teleconference.


• Salary adjustments are made by legislators in special session to be held only in election years, three weeks before election day.

"If this amendment were to pass and go into effect, you would see great improvement in the legislature's performance", said Hoogendyk. "Citizen lawmakers would come to town ready to get to the  business of approving a balanced budget, which is the most important function of the Legislature."

Organizers of this initiative are expected to have petitions ready to circulate by January 8th.  371,000 valid signatures will be needed by July 7th to put the question on the November 2008 ballot.

The petition was submitted by the Part-Time Legislature Committee, and details can be found at www.parttimelegislature.com. Those interested in volunteering to collect signatures may call Attorney Greg Schmidt, Treasurer of the Committee, at (989) 799 - 4641.


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Transparency comes to Washington; why not in Lansing?

Today (more than two weeks ahead of schedule), The federal Office of Management and Budget, (OMB) launched USASpending.gov, the website created thanks to the Federal Funding Accountability and Transparency Act. Creating the website, OMB said at the launch event, cost less than $1 million. The software cost $600,000. You can access the site at http://www.usaspending.gov/ . This is a huge step in the right direction and should help us generate new momentum as we pursue transparency in government spending efforts at the state level.

If we can do this at the federal level with a $3 trillion budget for only $1 million, why can't we do it at the state level with a $43 billion budget? Last Spring, I introduced HB 5137 (The State Funding Accountability and Transparency Act) to do the same thing in Lansing, (although it could happen with a simple executive order from the governor.)

Why won't the governor act? Is she hiding something? Does she not want taxpayers to know where all the money is going? Let's bring transparency to state government!

Transparency comes to Washington; why not in Lansing?

Today (more than two weeks ahead of schedule), The federal Office of Management and Budget, (OMB) launched USASpending.gov, the website created thanks to the Federal Funding Accountability and Transparency Act. Creating the website, OMB said at the launch event, cost less than $1 million. The software cost $600,000. You can access the site at http://www.usaspending.gov/ . This is a huge step in the right direction and should help us generate new momentum as we pursue transparency in government spending efforts at the state level.

If we can do this at the federal level with a $3 trillion budget for only $1 million, why can't we do it at the state level with a $43 billion budget? Last Spring, I introduced HB 5137 (The State Funding Accountability and Transparency Act) to do the same thing in Lansing, (although it could happen with a simple executive order from the governor.)

Why won't the governor act? Is she hiding something? Does she not want taxpayers to know where all the money is going? Let's bring transparency to state government!

Business Owners in Michigan are at Their Wits' End.

Here is part of a note I recently received from a frustrated business owner in Michigan. It is indicative of the hurdles employers in this state must go through just to make a profit and create a few jobs.

"As a small business owner, I am at a loss as to how to budget for this coming year because I have no idea how these taxes are going to affect my business. I have recently attended two seminars on tax planning concerning the MBT. Both were given by large accounting firms and the speakers were both tax attorneys and accountants. The bottom line was, neither firm had enough of an understanding of this tax to figure out for their clients if they had to file the tax this year. They could only give us a basic overview of how this tax would affect our businesses. How can it even be legal to pass a tax that no one understands? How am I supposed to pass the cost of this tax on to my customers when I don't have any idea what the cost will be? How can I plan my budget for the upcoming year with additional tax proposals on the table that could be enacted at any moment? One tax in particular that would devastate my business which is already losing money is the proposed increases on marina permits and MDEQ fees."

Business Owners in Michigan are at Their Wits' End.

Here is part of a note I recently received from a frustrated business owner in Michigan. It is indicative of the hurdles employers in this state must go through just to make a profit and create a few jobs.

"As a small business owner, I am at a loss as to how to budget for this coming year because I have no idea how these taxes are going to affect my business. I have recently attended two seminars on tax planning concerning the MBT. Both were given by large accounting firms and the speakers were both tax attorneys and accountants. The bottom line was, neither firm had enough of an understanding of this tax to figure out for their clients if they had to file the tax this year. They could only give us a basic overview of how this tax would affect our businesses. How can it even be legal to pass a tax that no one understands? How am I supposed to pass the cost of this tax on to my customers when I don't have any idea what the cost will be? How can I plan my budget for the upcoming year with additional tax proposals on the table that could be enacted at any moment? One tax in particular that would devastate my business which is already losing money is the proposed increases on marina permits and MDEQ fees."

More government mismanagement, but at least its a surplus.

During the budget process this past summer and fall, the Department of Natural resources was crying poverty and begging for fee increases to stay afloat.

Now we find that not only do they have a $10 million surplus in the fish and wildlife fund, but they knew it and didn't tell anybody!

I share Tom Casperson's (R-Escanaba) frustration with the department. How can we as legislators deal honestly and fairly with the budget when the executive branch won't be open and honest with us? Last year, there were three departments that overspent their budgets (in violation of the Constitution), now we find a department who hides excess funds and pushes for massive fee increases to cover their "shortfall".

Sounds to me like we need transparency in government.

Thanks to Tom Casperson for being the watchdog on this issue. Read the complete story here: http://www.dailypress.net/stories/articles.asp?articleID=15650

More government mismanagement, but at least its a surplus.

During the budget process this past summer and fall, the Department of Natural resources was crying poverty and begging for fee increases to stay afloat.

Now we find that not only do they have a $10 million surplus in the fish and wildlife fund, but they knew it and didn't tell anybody!

I share Tom Casperson's (R-Escanaba) frustration with the department. How can we as legislators deal honestly and fairly with the budget when the executive branch won't be open and honest with us? Last year, there were three departments that overspent their budgets (in violation of the Constitution), now we find a department who hides excess funds and pushes for massive fee increases to cover their "shortfall".

Sounds to me like we need transparency in government.

Thanks to Tom Casperson for being the watchdog on this issue. Read the complete story here: http://www.dailypress.net/stories/articles.asp?articleID=15650

Great Lakes Water Package: Too Much Regulation?

Michigan is a state unlike any other in the United States; we have unlimited supplies of fresh water all around us.  We are the only state in the Great Lakes basin that is located entirely in the basin. No question, we want to protect our water, keep it clean and prevent any other state from diverting it out of the basin. That is why the legislature moved, and the governor signed Public Act 33 of 2006. I voted for this common sense legislation which provided adequate protections of our lakes, rivers and ground water. It included reasonable fees, fines and application requirements for users of large quantities of water.
 
This year, the Legislature is considering the Great Lakes Water Resources Compact, (HB4343) which, when ratified by the seven states and two Canadian provinces within the Great Lakes basin, would prevent any non-compact state from diverting our water away from the basin.

Democrats Muddy the Waters

While many would support the Compact as a way to further protect the Great Lakes waters, the Democrats have tie-barred a nine-bill package to the Compact legislation which could be a real job killer in a state that can ill-afford further regulatory burdens on its jobs providers.  You can read the bills and analyses by clicking here.  Simply enter the bill numbers and the details will pop up on your computer screen.
 
In brief summary, here are some of the problems I see with these bills:

• HB5065 would remove the definition "consumptive use" from bottled water. Thus, water bottling plants such as Ice Mountain in Evart, MI would be exposed to even more restrictive permitting requirements.


• HB5066 would give the Department of Environmental Quality (DEQ) more power to regulate anyone that withdraws more than 100,000 gallons of groundwater per day.


• HB5067 would allow for civil fines for "impairing the waters" from $1,000 to $10,000.


• HB5068 would reduce maximum daily withdrawals of water to one million gallons or require extensive permitting processes first.


• HB5069 would allow the DEQ to charge commercial and industrial water users $500 for a "Water Withdrawal Assessment Tool".


• HB5070 would allow any "interested party" to petition the DEQ to investigate water users if they think the use creates an adverse condition.


• HB5071 requires the DEQ to evaluate every municipal user of water who withdraws over one million gallons per day.


• HB5072 requires water bottling companies who withdraw over 100,000 gallons per day to undergo extensive new permitting requirements.


• HB5073 allows the DEQ to write and enforce new rules that have the force of law. (The problem here is that the DEQ is part of the executive branch, charged with the responsibility to enforce the law.  The Legislative branch is the one responsible for making laws.)

When considering these bills, which would further restrict water usage, we need to have an understanding of how much water is available for human consumptive or industrial use. Lake Michigan, which is only one of five great lakes, contains 1,180 cubic miles of water, about 130 quadrillion gallons. Over one trillion gallons of rain fall on the surface of the lake each year.

Water is an important component in the manufacture or processing of thousands of products made in this state. For instance, it takes 1.3 gallons of water to produce one gallon of bottled water, it requires 42 gallons of water to produce one gallon of beer. The manufacture of one automobile requires 27,000 gallons of water.

To me the issue is not one of water usage, but of responsible water usage. Ice Mountain uses 830,000 gallons of water per day to produce its bottled water products. Is that a lot of water? Consider that Pfizer Pharmaceuticals withdraws 28 million gallons of water per day at its production plant in Portage, Michigan and has been doing so for over forty years with no ill effects to surrounding lakes or streams.  The Grand Rapids Municipal water system withdraws 37 million gallons per day.

It is replenished daily by rainfall, (and in Michigan lots of snow!)  At current usage levels, we are not in danger of depleting it and we cannot produce most goods and services without it.  If we enact the package of bills described above, we will greatly cripple this state's ability to grow and create more jobs for its people. One last question: is this nine-bill package really about protection of our water or Democrats playing politics and putting more hurdles in front of job providers?

Firefighters Presumption of Cancer Bill

Under HB4401, if you were a paid firefighter for two years or longer, and you contract virtually any type of common cancer, the presumption is you contracted it because of contact with toxic chemicals during your employment.

It would even count if you worked for two years in your twenties and then at age 65 contracted, for instance, lymphoma. The presumption would be that it was your work as a firefighter 40 years previous that caused you to contract the cancer. It further seems to presume that you would be eligible even if you worked for the fire department but never actually fought a fire.

As the Detroit News points out, "Current workers' compensation law provides more than adequate protection for firefighters and other employees whose injuries and illnesses are job related."

The costs to government go up significantly...legal fees, insurance costs, administrative paperwork, etc...as if they can afford increased costs as their revenue sharing payments decline.

Firefighters Presumption of Cancer Bill

Under HB4401, if you were a paid firefighter for two years or longer, and you contract virtually any type of common cancer, the presumption is you contracted it because of contact with toxic chemicals during your employment.

It would even count if you worked for two years in your twenties and then at age 65 contracted, for instance, lymphoma. The presumption would be that it was your work as a firefighter 40 years previous that caused you to contract the cancer. It further seems to presume that you would be eligible even if you worked for the fire department but never actually fought a fire.

As the Detroit News points out, "Current workers' compensation law provides more than adequate protection for firefighters and other employees whose injuries and illnesses are job related."

The costs to government go up significantly...legal fees, insurance costs, administrative paperwork, etc...as if they can afford increased costs as their revenue sharing payments decline.

More regulation of the building industry

Senate Bills 450-453 contain a laundry list of new restrictions, regulations and penalties:

• Increase penalties for a person who operated as a residential builder or residential maintenance/alteration contractor without a license.
• Allows for civil action against someone who is not licensed.
• Allows DLEG, the attorney general or the county prosecutor to use forfeiture as a remedy.
• Increases the annual builders license fees by 50%.

If you plan to help your neighbor put a roof on his garage or put up some drywall in the basement, you might want to reconsider. You could go to jail.

More regulation of the building industry

Senate Bills 450-453 contain a laundry list of new restrictions, regulations and penalties:

• Increase penalties for a person who operated as a residential builder or residential maintenance/alteration contractor without a license.
• Allows for civil action against someone who is not licensed.
• Allows DLEG, the attorney general or the county prosecutor to use forfeiture as a remedy.
• Increases the annual builders license fees by 50%.

If you plan to help your neighbor put a roof on his garage or put up some drywall in the basement, you might want to reconsider. You could go to jail.

How Politics Works in Lansing

Here is a story you likely did not read in the press:

Last Thursday, the House GOP caucus had prepared an amendment that would reduce, reform and cut government spending by $670 million dollars. It would have eliminated the need for the service tax, or the "surcharge" on the MBT.

The GOP had fifty members present that day, the Dems had 53. We were six short of the 56 votes needed to pass anything- they were three short. After Speaker Dillon told us he would give us a vote on this amendment in exchange for three votes on the final bill, he learned that many of his members wanted to vote for our amendment, and that it would pass! He then changed his mind on holding the vote, and adjourned for the day.

Our reforms included welfare limits, Medicaid reforms and reductions to wasteful or unnecessary items. There is support for reform in Michigan even within the Dem caucus, but Speaker Dillon is standing in the way.

Thanks to Craig DeRoche, Minority Leader for his leadership on this effort.

How Politics Works in Lansing

Here is a story you likely did not read in the press:

Last Thursday, the House GOP caucus had prepared an amendment that would reduce, reform and cut government spending by $670 million dollars. It would have eliminated the need for the service tax, or the "surcharge" on the MBT.

The GOP had fifty members present that day, the Dems had 53. We were six short of the 56 votes needed to pass anything- they were three short. After Speaker Dillon told us he would give us a vote on this amendment in exchange for three votes on the final bill, he learned that many of his members wanted to vote for our amendment, and that it would pass! He then changed his mind on holding the vote, and adjourned for the day.

Our reforms included welfare limits, Medicaid reforms and reductions to wasteful or unnecessary items. There is support for reform in Michigan even within the Dem caucus, but Speaker Dillon is standing in the way.

Thanks to Craig DeRoche, Minority Leader for his leadership on this effort.

Part-time Legislature; would you like yours with or without term limits?

Since coming to Lansing, I have been a proponent of the Part-time Legislature (PTL). I introduced it as an amendment to the state Constitution in my first term and again this year. It is now finally starting to pick up momentum. In fact, there may be more than one option available.

Today, the Kalamazoo Chamber and the Home Builders Association of Kalamazoo announced a PTL effort. Meanwhile, Saginaw attorney Greg Schmid has submitted language for a PTL petition. The two measures are very similar except in one key respect: The Kalamazoo proposal calls for elimination of term limits. The Saginaw effort leaves term limits alone. It will be interesting to see which one gains more traction.

I have been a proponent of term limits from the start and still support them. I think it is unfair to put voters in a position to accept term limits with a PTL proposal. I may be wrong, but I believe voters would prefer to leave term limits as they are. Time will tell...

You can read a short story about the Kalamazoo effort here: http://www.mlive.com/news/kzgazette/index.ssf?/base/news-26/1197042604306480.xml&coll=7

Information about the PTL effort that leaves term limits intact is available at http://www.parttimelegislature.com/

Part-time Legislature; would you like yours with or without term limits?

Since coming to Lansing, I have been a proponent of the Part-time Legislature (PTL). I introduced it as an amendment to the state Constitution in my first term and again this year. It is now finally starting to pick up momentum. In fact, there may be more than one option available.

Today, the Kalamazoo Chamber and the Home Builders Association of Kalamazoo announced a PTL effort. Meanwhile, Saginaw attorney Greg Schmid has submitted language for a PTL petition. The two measures are very similar except in one key respect: The Kalamazoo proposal calls for elimination of term limits. The Saginaw effort leaves term limits alone. It will be interesting to see which one gains more traction.

I have been a proponent of term limits from the start and still support them. I think it is unfair to put voters in a position to accept term limits with a PTL proposal. I may be wrong, but I believe voters would prefer to leave term limits as they are. Time will tell...

You can read a short story about the Kalamazoo effort here: http://www.mlive.com/news/kzgazette/index.ssf?/base/news-26/1197042604306480.xml&coll=7

Information about the PTL effort that leaves term limits intact is available at http://www.parttimelegislature.com/

Smoking Ban in Private Restaurants Passes the House

HB4163 passed the House yesterday. It would prohibit a business owner, including the owner of a bar or restaurant, from choosing to allow smoking in his or her establishment. I voted no. Tough vote in some ways, but not really.

Hey, I don't smoke, and don't like smoke in my face when I am out for dinner. I understand all too well the health risks of smoking. My dad died of lung cancer after smoking for 60 years. He was in the prime of his life at age 72. As healthy as he was in all other respects, he might still be with us today at age 91.

In spite of this, I cannot get around the Constitution, nor the principles upon which it stands, one of those being the right to private property. We must not infringe on the rights of private property to engage in any LEGAL activity they desire. No one is being forced to patronize a privately owned restaurant where smokers are.

I only wish I could be as eloquent as some of our founders...

"The moment the idea is admitted into society that property is not as sacred as the law of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence." --John Adams

"Among the natural rights of the colonists are these: first, a right to life; secondly, to liberty; thirdly to property; together with the right to support and defend them in the best manner they can." --Samuel Adams

Read up on the bill and find out how your Representative voted here:
http://www.michiganvotes.org/RollCall.aspx?ID=239146

Smoking Ban in Private Restaurants Passes the House

HB4163 passed the House yesterday. It would prohibit a business owner, including the owner of a bar or restaurant, from choosing to allow smoking in his or her establishment. I voted no. Tough vote in some ways, but not really.

Hey, I don't smoke, and don't like smoke in my face when I am out for dinner. I understand all too well the health risks of smoking. My dad died of lung cancer after smoking for 60 years. He was in the prime of his life at age 72. As healthy as he was in all other respects, he might still be with us today at age 91.

In spite of this, I cannot get around the Constitution, nor the principles upon which it stands, one of those being the right to private property. We must not infringe on the rights of private property to engage in any LEGAL activity they desire. No one is being forced to patronize a privately owned restaurant where smokers are.

I only wish I could be as eloquent as some of our founders...

"The moment the idea is admitted into society that property is not as sacred as the law of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence." --John Adams

"Among the natural rights of the colonists are these: first, a right to life; secondly, to liberty; thirdly to property; together with the right to support and defend them in the best manner they can." --Samuel Adams

Read up on the bill and find out how your Representative voted here:
http://www.michiganvotes.org/RollCall.aspx?ID=239146

Stricter regulations are coming

If heaping a greater burden of taxes on the backs of business owners across the state were not bad enough, we are now in the "regulatory season". From now until the end of the year, and probably into next year, we will be seeing a multitude of new bills that deal with putting more controls on individual and corporate behavior.

Stay tuned over the coming days, I will be blogging on the details. I will also be sending out my regular e-mail newsletter with more in-depth explanation of these bills. If you are not receiving my newsletter, simply send me an email with the word "subscribe" in the subject line. The address to request the newsletter is jackhoogendyk@gmail.com.

Stricter regulations are coming

If heaping a greater burden of taxes on the backs of business owners across the state were not bad enough, we are now in the "regulatory season". From now until the end of the year, and probably into next year, we will be seeing a multitude of new bills that deal with putting more controls on individual and corporate behavior.

Stay tuned over the coming days, I will be blogging on the details. I will also be sending out my regular e-mail newsletter with more in-depth explanation of these bills. If you are not receiving my newsletter, simply send me an email with the word "subscribe" in the subject line. The address to request the newsletter is jackhoogendyk@gmail.com.

Part Time effort gaining momentum

If you didn't already think the Michigan Legislature should become a part-time operation, the actions of the past eleven months probably convinced you. In 2007 (so far) lawmakers:

• After receiving a budget from the Governor in mid-February, waited until October 1st, several hours AFTER government shut down to finally approve a tentative budget.


• Raised taxes by $1.5 billion to cover the governor's insatiable appetite for excessive government growth.


• Realized within days that the tax on services they approved would devastate the economy of the state.


• After delaying for nearly two months and taking a two-week hunting break, passed a repeal and replacement for the services tax AFTER the service tax had already gone into effect.

In 2007, legislators approved the governor's proposal to increase spending by $1 billion and raise taxes by $1.5 billion with little apparent regard to how it would affect the business community and economic development.  Now that the budget is wrapped up (two months after the beginning of the fiscal year), legislators are working on onerous new regulations that will further stifle economic development.

I am happy to report the effort to put a part-time legislature effort on the ballot is under way.  The ballot language is almost complete. It will include the following components: 

• Salary is cut in half, pay is docked for absenteeism, personal expenses are limited to actual travel and lodging


• Pensions and lifetime medical benefits are eliminated


• Legislature sets all salaries in a dedicated session right before elections


• Sessions are from March through June, with limited special sessions.


• Budget must be submitted at the beginning of the session. Committee work still continues between sessions, members can participate and vote in committee from their home district.

Before a petition drive to put this measure on the ballot can begin in earnest, two things are needed: volunteers and funding. The time to get organized, start raising money and generating grass roots support is now. Go to the PartTimeLegislature web site and sign up to get involved. I look forward to supporting this effort.

Final Tally on HB5408 (version 8)

The 22%, ten-year tax increase on Michigan Business Taxes was passed in the House today by a vote of 66 YES and 42 NO. (2 absent) All Democrats voted YES.

According to Governor Granholm, we are only three years from being "blown away". Do you think it will take that long?

Final Tally on HB5408 (version 8)

The 22%, ten-year tax increase on Michigan Business Taxes was passed in the House today by a vote of 66 YES and 42 NO. (2 absent) All Democrats voted YES.

According to Governor Granholm, we are only three years from being "blown away". Do you think it will take that long?

This 22% surcharge has a sunset...

...but it will be a long day. The sunset is in ten years.

This 22% surcharge has a sunset...

...but it will be a long day. The sunset is in ten years.

Oh, and then there is the "Incompetence Tax"

It was well said by Craig DeRoche, Minority Leader of the House when he said that the hundreds of millions that businesses paid to figure out how to pay the service tax which did not go into effect could be characterized as the "Incompetence Tax."

Do you think the Legislature is incompetent? We shut down government for four hours because we can't get the budget done in time. We impose a tax that would put many businesses into bankruptcy, one that would have generated two or three times what was predicted. We come back with a repeal and replacement. We create a new Michigan Business Tax (MBT) which brings in more revenue than the SBT, and then we add 22% on top of that. We spend $1 billion more than last year in the worst economy in America?

Incompetent? That is an understatement.

Oh, and then there is the "Incompetence Tax"

It was well said by Craig DeRoche, Minority Leader of the House when he said that the hundreds of millions that businesses paid to figure out how to pay the service tax which did not go into effect could be characterized as the "Incompetence Tax."

Do you think the Legislature is incompetent? We shut down government for four hours because we can't get the budget done in time. We impose a tax that would put many businesses into bankruptcy, one that would have generated two or three times what was predicted. We come back with a repeal and replacement. We create a new Michigan Business Tax (MBT) which brings in more revenue than the SBT, and then we add 22% on top of that. We spend $1 billion more than last year in the worst economy in America?

Incompetent? That is an understatement.

The 2007-2008 budget is now DONE!

Only 60 days after the beginning of the budget year, and ten months after the governor first proposed her budget, it is now finished.

With passage of today's $617 million surcharge (read tax increase) on the Michigan Business Tax, to affect about 60,000 businesses in the state, this budget is now complete. The governor got just about everything she wanted, and spending went up $1 billion dollars, YOUR dollars.

Cheer up, only 60 days until the governor submits her budget for 2008-2009. As Cubs fans say, "Wait 'til next year!"

The 2007-2008 budget is now DONE!

Only 60 days after the beginning of the budget year, and ten months after the governor first proposed her budget, it is now finished.

With passage of today's $617 million surcharge (read tax increase) on the Michigan Business Tax, to affect about 60,000 businesses in the state, this budget is now complete. The governor got just about everything she wanted, and spending went up $1 billion dollars, YOUR dollars.

Cheer up, only 60 days until the governor submits her budget for 2008-2009. As Cubs fans say, "Wait 'til next year!"

Tax on businesses to go up 22% immediately

I what has become the typical modus operandi, the Legislature has decided to act late. Today at 3:30 the House is to go into session and pass a single bill to repeal the service tax which took effect last night and replace it with a capped surcharge on MBT liability to any business that pays it.

Effective immediately, any business that generates over $350,000 in business activity, will have to calculate its Michigan Business Tax liability and then add 22% to that bill.  Over 60,000 businesses in this state will see their tax bill, the MBT, go up by 22%.  Large corporations will get a break because the maximum liability on the surcharge will be capped at $6 million.

Remember last year when we repealed the Single Business Tax?  The governor said the replacement for the SBT had to be "revenue neutral".  The Legislature produced the MBT as a replacement, which economists and analysts are now saying will produce more revenue than the SBT.  Guess what? It's a moot point because the governor, aided by her Democrat legislators, and with the help of some Republicans as well, has just pulled off a 22% tax increase to virtually every business in the state.

The good news: you won't die by firing squad. The bad news: you may die of suffocation. Over time many businesses are going to find it hard to breathe...

I will be blogging from the House floor with updates. Read  here.ok forward to supporting this effort.

No session today

The Dems cancelled session for today and have not scheduled one for Friday either. It is looking more and more like the 6% sales tax on services will go into effect on December 1, 2007.
Be prepared to start paying sales taxes on certain services on Saturday.

No session today

The Dems cancelled session for today and have not scheduled one for Friday either. It is looking more and more like the 6% sales tax on services will go into effect on December 1, 2007.
Be prepared to start paying sales taxes on certain services on Saturday.

But they forgot to enroll the bill!!

Get this, the rules requiring enrollment of the bill were not waived, so even if the Senate votes on the bill, it still has to come back to the House for enrollment. If we don't come back until Tuesday, it will be too late.

Unfortunately, that means the serice tax will go into effect.

But they forgot to enroll the bill!!

Get this, the rules requiring enrollment of the bill were not waived, so even if the Senate votes on the bill, it still has to come back to the House for enrollment. If we don't come back until Tuesday, it will be too late.

Unfortunately, that means the serice tax will go into effect.

We got jammed!

After waiting all day for the Dems to give us a bill to vote on, they introduced a substitute and had us vote on it with no explanation and no time to read the bill.

Rather than adopt the Senate version of the replacement bill (17% surcharge and a $7.5 million cap) or push the Senate to vote on the House version, (33% surcharge and a $2 million cap) they subbed a bill with a 30.5% surcharge and a $4.75 million cap.

Here's the rub. They made us vote blind, then adjourned until next Tuesday. They are apparently trying to force the Senate's hand. Either the Senate has to approve this stinker of a bill, or do nothing and the service tax goes into effect.

How sophomoric can you get? Stay tuned for further developments.

We got jammed!

After waiting all day for the Dems to give us a bill to vote on, they introduced a substitute and had us vote on it with no explanation and no time to read the bill.

Rather than adopt the Senate version of the replacement bill (17% surcharge and a $7.5 million cap) or push the Senate to vote on the House version, (33% surcharge and a $2 million cap) they subbed a bill with a 30.5% surcharge and a $4.75 million cap.

Here's the rub. They made us vote blind, then adjourned until next Tuesday. They are apparently trying to force the Senate's hand. Either the Senate has to approve this stinker of a bill, or do nothing and the service tax goes into effect.

How sophomoric can you get? Stay tuned for further developments.

The Lansing Report for November 28, 2007

This is a crucial week for the state of Michigan. We are only three days from implementation of what is certainly the most damaging tax on business in the state's history.  Read on to find out how we got here and what is being done (or not done) to resolve the problem.

First, a Little History

Early on the morning of October 1st, after the state had officially shut down, the Legislature increased the income tax from 3.9% to 4.35% and implemented a new tax of 6% on certain services. This second tax, which is purported to bring in $650 million in new revenue, is a heavy burden on the business community.  Most of the tax will be collected on business-to-business transactions.  It did not take long for the business community to spring into action. They recently launched a petition drive called "Ax the Tax."
 
This onerous tax is scheduled to go into effect on December 1st.

Michigan on the Brink

With the December 1st date looming, the legislature has been slowly and somewhat deliberately working on a "fix". The House acted to repeal the services tax and immediately replace it with a surcharge on the Michigan Business Tax.  The new MBT, enacted early this year, replaces the Single Business Tax (SBT).  It affects over 60,000 businesses in the state. The surcharge would be an amount equal to 33% of the current liability owed by each business. So, what the House did was ask virtually every business in the state to pay an extra 33% on their tax bill. (Companies with less than $350,000 in business activity do not pay MBT.) The House did essentially exempt the largest corporations in the state, however.  They put a cap on the surcharge of $2 million.  There are perhaps 25 or 30 companies that would pay much more than $2 million otherwise.
 
Meanwhile, the Senate repealed the services tax as well. They replaced it with a surcharge of "only" 14% and a cap on large businesses of $7.5 million.
 
Today in the House, we are waiting to see if we will act on the Senate version or pass a modified version that is somewhere between the original House version and the Senate version.  Regardless, we will be putting a heavy burden on 60,000 businesses in this state. Many of those businesses are on the brink of extinction.  With all the other pressures they are facing, this could be the last straw.
 
Today is Wednesday. We have the rest of today, tomorrow and Friday to address this issue. It looks as if we may be in the eleventh hour before we act.

Meanwhile...

Since this crisis began on October 1st, the House has been holding hearings and voting on various bills and resolutions such as:

• HR233 commemorating the 50th anniversary of the Detroit Lions National Championship.


• SB593 licensing and regulating tattoo parlors.


• HB4730 mandating hard-wired carbon monoxide detectors in ALL hotel rooms. (Current death toll from carbon monoxide inhalation in hotel rooms in Michigan: zero.)


• HB5341 mandating hard-wired carbon monoxide detectors in ALL new residential structures.


• HB5375 creating Promise zones for the poor, to give free college education to any child (rich or poor) if she lives in a poverty stricken district. (Oh, and it only applies to regular public schools, not charters, privates or home schools.)


• HB4163 prohibiting smoking on private property (bars and restaurants).

We were in recess from November 9th through November 25th. (Traditional hunting/Thanksgiving break.)

Education Alert---you are about to be excluded

House Education Committee moving legislation today. The House Education Committee is scheduled to move legislation today to create "Promise Zones for the Poor", (HB5375).  It is fashioned after the Kalamazoo Promise, a college scholarship program for kids in the Kalamazoo Public School district. This program was funded by several private donors and provides free college education for any public school student in the KPS district who meets minimum performance requirements.

HB5375 is very bad legislation for a number of reasons, including that it only qualifies certain geographical districts based on income levels of their residents.  The problem is, rich kids in a poor district could qualify for a free scholarship, but poor kids in a rich district would not qualify. You can read the bill and analysis here.

But the real problem with this bill is that it excludes, charter schools (public school academies), private and religious schools and any child who is home-educated.

You need to call or write your legislator immediately and express your opinion.  You can find your legislator here.

You should all contact the Chair of the Education Committee, Tim Melton, and ask him to reconsider this legislation. Link to his e-mail address here.  It is wrong to use taxpayer funds, collected from ALL taxpayers of the state and target those funds only to certain recipients based on where they live and whether they go to a government school.

Kalamazoo Promise: Great Idea! Michigan Promise: Terrible Idea.

A couple of years ago, a few wealthy Kalamazoo philanthropists got together to create the Kalamazoo Promise. Putting up their own money, they created a scholarship fund that would provide a free college education for any child in the Kalamazoo Public School district who achieved minimum grade standards. Kalamazoo is fortunate to have such generous contributors to their community.

Now the Legislature is considering HB5375, "Promise Zones for the Poor". This is very bad legislation. It picks winners and losers, it offers huge potential government growth, and it tries to do something that government should not even attempt.

Under this bill, certain children will qualify for a free college education IF they live in the right district, one with a certain minimum poverty level. But if your child attends a Public School Academy (charter school), a private or parochial school, or if your children are educated at home, do not bother to apply, you are not included.

The Department of Treasury will oversee this boondoggle (there is your government growth), and each district that qualifies will have to set up an "authority" with a board of eleven members (more government).

Do we want poor children to have an opportunity to attend college? Of course we do. But we already have in place, numerous grants, scholarships and loans for those who do not have the finances to attend. There was a time when most kids who went to college did so only because they spent all their free time working to help pay for the education they were getting. In addition, the state already provides $1.7 billion of the taxpayers dollars to support public universities across the state.

State government was not intended, and our Constitution certainly does not mandate the provision of a free college education to certain poor students.

Kalamazoo Promise: Great Idea! Michigan Promise: Terrible Idea.

A couple of years ago, a few wealthy Kalamazoo philanthropists got together to create the Kalamazoo Promise. Putting up their own money, they created a scholarship fund that would provide a free college education for any child in the Kalamazoo Public School district who achieved minimum grade standards. Kalamazoo is fortunate to have such generous contributors to their community.

Now the Legislature is considering HB5375, "Promise Zones for the Poor". This is very bad legislation. It picks winners and losers, it offers huge potential government growth, and it tries to do something that government should not even attempt.

Under this bill, certain children will qualify for a free college education IF they live in the right district, one with a certain minimum poverty level. But if your child attends a Public School Academy (charter school), a private or parochial school, or if your children are educated at home, do not bother to apply, you are not included.

The Department of Treasury will oversee this boondoggle (there is your government growth), and each district that qualifies will have to set up an "authority" with a board of eleven members (more government).

Do we want poor children to have an opportunity to attend college? Of course we do. But we already have in place, numerous grants, scholarships and loans for those who do not have the finances to attend. There was a time when most kids who went to college did so only because they spent all their free time working to help pay for the education they were getting. In addition, the state already provides $1.7 billion of the taxpayers dollars to support public universities across the state.

State government was not intended, and our Constitution certainly does not mandate the provision of a free college education to certain poor students.

Photo ID Required? This is disenfranchisement!!

Can you imagine that we would be required to show photo ID? You mean we can't just walk up, identify ourselves by name and be allowed "in"? We have to show our diver's license? What if we don't have one? This is a miscarriage of justice!

Oh, I am not talking about voting...I am talking about getting into the Governor's "Holiday Party". That's funny, the Governor who was opposed to making voters show their photo ID to exercise one of the most important functions as a citizen, won't let you into her party unless you show a photo ID.

Hmmm...

Photo ID Required? This is disenfranchisement!!

Can you imagine that we would be required to show photo ID? You mean we can't just walk up, identify ourselves by name and be allowed "in"? We have to show our diver's license? What if we don't have one? This is a miscarriage of justice!

Oh, I am not talking about voting...I am talking about getting into the Governor's "Holiday Party". That's funny, the Governor who was opposed to making voters show their photo ID to exercise one of the most important functions as a citizen, won't let you into her party unless you show a photo ID.

Hmmm...

Should we "extend" term limits?

We have been here since 1:30 p.m. on a Monday when usually, we don't even meet. We have not voted on anything yet. Apparently the issue is term limits.

Currently, House members get six years, Senate members get 8 years. A person could serve a total of 14 years, is he/she were fortunate enough to get elected to the House 3 times, and the Senate 2 times. But there has been a State Chamber-led effort to change term limits to 12 years, any way you want to use them. So, you could serve 12 years in the House, or 12 in the Senate, or any combination that adds up to twelve years. Seems innocent enough, right?

The problem at this point is that you need a minimum 60-day spread between the day you put something on the ballot and when the election happens. To put term limits on the January 15 Presidential ballot, we would have had to act by the 14th of November. What to do? Some have suggested we put off the primary until January 29th and put the term limit question on the ballot.

Oh, by the way, there are 42 or 43 Representatives who are done at the end of next year. With this term limits extension, we could stay another 6 years. In the interest of full disclosure, if it comes up for a vote, I am a "NO". I got here because of term limits, I advocated for them, I supported them. How hypocritical would it be for me to suddenly vote to extend my stay here, in Lansing?

And just one more thing...I understand there is a poll coming out that shows the Legislature in Michigan has an DISapproval rating of 82%, the lowest ever recorded. Do you think the voters want to send us back to Lansing for another term?

Should we "extend" term limits?

We have been here since 1:30 p.m. on a Monday when usually, we don't even meet. We have not voted on anything yet. Apparently the issue is term limits.

Currently, House members get six years, Senate members get 8 years. A person could serve a total of 14 years, is he/she were fortunate enough to get elected to the House 3 times, and the Senate 2 times. But there has been a State Chamber-led effort to change term limits to 12 years, any way you want to use them. So, you could serve 12 years in the House, or 12 in the Senate, or any combination that adds up to twelve years. Seems innocent enough, right?

The problem at this point is that you need a minimum 60-day spread between the day you put something on the ballot and when the election happens. To put term limits on the January 15 Presidential ballot, we would have had to act by the 14th of November. What to do? Some have suggested we put off the primary until January 29th and put the term limit question on the ballot.

Oh, by the way, there are 42 or 43 Representatives who are done at the end of next year. With this term limits extension, we could stay another 6 years. In the interest of full disclosure, if it comes up for a vote, I am a "NO". I got here because of term limits, I advocated for them, I supported them. How hypocritical would it be for me to suddenly vote to extend my stay here, in Lansing?

And just one more thing...I understand there is a poll coming out that shows the Legislature in Michigan has an DISapproval rating of 82%, the lowest ever recorded. Do you think the voters want to send us back to Lansing for another term?

Monday, Monday, why are we here?

You may have thought that we met during the "Bambi break" from November 9th until today, November 26. We didn't. The Dems did schedule session for the 13th, only to cancel it late the 12th. And then they scheduled for the 20th, only to cancel late on the 19th. It's a great strategy. The news reports we are meeting...working, then after the news folks go home for the day, "leadership" cancels the session.

Well, I guess we are here today partly to show we are meeting again, (this is only the third Monday in my 5 years in the House), and partly to "fix" the Presidential primary bill.

You may not have heard that the state Supreme Court at noon on Wednesday last, ruled that the January 15th primary should go forward. The only problem is the Dems aren't participating, which completely fouls up the intent, which is to produce a clean list of Republicans and Democrats who voted. I guess the Dems are on board with a "fix" which puts all the Dems on the ballot whether they like it or not. Stay tuned. It may be a busy day, with many more fun things happening.

Monday, Monday, why are we here?

You may have thought that we met during the "Bambi break" from November 9th until today, November 26. We didn't. The Dems did schedule session for the 13th, only to cancel it late the 12th. And then they scheduled for the 20th, only to cancel late on the 19th. It's a great strategy. The news reports we are meeting...working, then after the news folks go home for the day, "leadership" cancels the session.

Well, I guess we are here today partly to show we are meeting again, (this is only the third Monday in my 5 years in the House), and partly to "fix" the Presidential primary bill.

You may not have heard that the state Supreme Court at noon on Wednesday last, ruled that the January 15th primary should go forward. The only problem is the Dems aren't participating, which completely fouls up the intent, which is to produce a clean list of Republicans and Democrats who voted. I guess the Dems are on board with a "fix" which puts all the Dems on the ballot whether they like it or not. Stay tuned. It may be a busy day, with many more fun things happening.

Ax the Tax Update

I am writing to you either because you sent me a note asking me to repeal the 6% tax on services, or because I know you are concerned about rising taxes on businesses and individuals in this state. I thought it would be helpful to give you an update on what is happening in Lansing.

As I write this letter on Monday, November 26, we are sitting on the House floor waiting for action to take place.  While business owners and families wait for action, with their business's success or failure literally hanging in the balance, we sit here on the House floor doing nothing.
 
We are in a state of paralysis.  Why?  Apparently, "leadership" can't decide what to do about the Presidential Primary election "fix" and whether or not to attempt to put a change in legislative term limits on the ballot. The fix involves putting all the Democrats names on the ballot, even though most of them have agreed not to campaign here. The term limits question is regarding allowing legislators to stay in one chamber 12 years, rather than the current situation where you are allowed a maximum of 6 years in the House and 8 years in the Senate.
 
There is not likely to be anything done on the service tax issue today.  Will it be done this week?  Hopefully.  Right now, we have a House passed version which repeals the service tax and replaces it with a 33% surcharge on everyone's Michigan Business Tax liability, (just figure out your MBT bill and add 33%).  The surcharge would be capped at $2 million, so large corporations like GM, Ford, Kellogg's and the like would see their tax liability reduced.
 
The Senate passed a repeal and replaced it with a 13% surcharge on the MBT and a cap of $7.5 million. They also would use a $220 million "windfall profit" from the transition to MBT from the SBT and spread it over three years, lowering the tax liability for all.  Meanwhile, December 1st still looms as the date the service tax takes effect.
 
Regardless, whether we end up with the Senate or the House version, we are still raising taxes at least $560 million.  We would just hit businesses with a brick instead of a two-by-four.
 
Just to be clear, I have never voted for a tax increase or a fee increase, for that matter, (unless it was shown clearly that the fee was for an actual service rendered). I believe there is plenty of opportunity to reduce government spending, we do not need to further burden our state's struggling businesses with another tax obligation. Michigan has a 7.7% unemployment rate, 1.6% higher than the next nearest state. We need economic recovery and prosperity.  Everyone knows you cannot tax yourself into prosperity.
 
Want to track what happens?  Read my blog for the latest updates from the House floor.

"Jobs Today, Jobs Tomorrow"

I was cleaning out a few files the other day and came across a transcript of the Governor's State of the State speech from 2005. The title of the speech was "Jobs Today, Jobs Tomorrow".

I guess the printer left off the rest of the title of the speech, "...and unemployment the day after that."

"Jobs Today, Jobs Tomorrow"

I was cleaning out a few files the other day and came across a transcript of the Governor's State of the State speech from 2005. The title of the speech was "Jobs Today, Jobs Tomorrow".

I guess the printer left off the rest of the title of the speech, "...and unemployment the day after that."

Senate passes a "Really Bad Tax"

Yesterday, the Senate passed a replacement for the 5% tax on services, which they already repealed. The replacement is similar to the House passed version of a surcharge on the Michigan Business Tax of 33% to all businesses who pay the MBT, with the exception of the 20 or so largest corporations, who will pay a cap on the surcharge of $2 million, (saving them tens of millions).

The Senate passed version, reduces the surcharge to 13.85% and raises the cap to $7.5 million. It also assumes the $220 million "windfall" that the new MBT already brings in vs. the old SBT, and spreads it out over three years. So now, rather than a $625 million body slam to business, the Senate version is "only" a $560 body slam to business.

The bottom line is this: On October 1st, the legislature amputated the right arm of businesses in this state (without anesthetic, or sutures) and on November 20, the Senate sewed the arm back on...down to the elbow.

You call this a solution? What happened to the spending cuts? Why must the business community be forced to make a $560 million payment to government (on top of the $750 million in new income taxes) to support their continued bloated growth? When is the legislature and the governor going to recognize that this state's economy is already in the tank and about to get sucked down the drain?

It is high time for a reality check. The business community isn't even angry anymore; they have descended into despair and hopelessness. You think 7.7% unemployment is bad? Wait 'til next year!

Senate passes a "Really Bad Tax"

Yesterday, the Senate passed a replacement for the 5% tax on services, which they already repealed. The replacement is similar to the House passed version of a surcharge on the Michigan Business Tax of 33% to all businesses who pay the MBT, with the exception of the 20 or so largest corporations, who will pay a cap on the surcharge of $2 million, (saving them tens of millions).

The Senate passed version, reduces the surcharge to 13.85% and raises the cap to $7.5 million. It also assumes the $220 million "windfall" that the new MBT already brings in vs. the old SBT, and spreads it out over three years. So now, rather than a $625 million body slam to business, the Senate version is "only" a $560 body slam to business.

The bottom line is this: On October 1st, the legislature amputated the right arm of businesses in this state (without anesthetic, or sutures) and on November 20, the Senate sewed the arm back on...down to the elbow.

You call this a solution? What happened to the spending cuts? Why must the business community be forced to make a $560 million payment to government (on top of the $750 million in new income taxes) to support their continued bloated growth? When is the legislature and the governor going to recognize that this state's economy is already in the tank and about to get sucked down the drain?

It is high time for a reality check. The business community isn't even angry anymore; they have descended into despair and hopelessness. You think 7.7% unemployment is bad? Wait 'til next year!

Unemployment climbs again in Michigan

The unemployment rate in Michigan is now 7.7%, a full 3 points above the national average. If that news is not bad enough, it appears that the decline in employment is accelerating. MIRS reports that the 22,000 jobs lost in October was the largest month-over-month loss this year.

And it isn't just manufacturing jobs, either. There was a loss of 8,000 mfg. jobs, but also 5,000 in the hospitality and leisure sector. No doubt, much of that is seasonal, but no matter how you look at it, the news is not encouraging.

Meanwhile, the tax on services issue has not been resolved and the Governor is now holding the process "hostage" until she gets guarantees of $40 million in new revenues to cover the "loss" of the service tax which would occur during the period from December 1 to December 20.

The legislature did not meet this week. Session was scheduled for Tuesday, but canceled the night before. The next scheduled day for session is Tuesday before Thanksgiving. It will be interesting to see if the House Dems have come up with a plan to fix this issue.

The only thing job providers dislike more than poor tax policy is uncertainty. The clock is ticking and 60,000 businesses don't know what is expected of them come December 1st. We need some leadership...

Unemployment climbs again in Michigan

The unemployment rate in Michigan is now 7.7%, a full 3 points above the national average. If that news is not bad enough, it appears that the decline in employment is accelerating. MIRS reports that the 22,000 jobs lost in October was the largest month-over-month loss this year.

And it isn't just manufacturing jobs, either. There was a loss of 8,000 mfg. jobs, but also 5,000 in the hospitality and leisure sector. No doubt, much of that is seasonal, but no matter how you look at it, the news is not encouraging.

Meanwhile, the tax on services issue has not been resolved and the Governor is now holding the process "hostage" until she gets guarantees of $40 million in new revenues to cover the "loss" of the service tax which would occur during the period from December 1 to December 20.

The legislature did not meet this week. Session was scheduled for Tuesday, but canceled the night before. The next scheduled day for session is Tuesday before Thanksgiving. It will be interesting to see if the House Dems have come up with a plan to fix this issue.

The only thing job providers dislike more than poor tax policy is uncertainty. The clock is ticking and 60,000 businesses don't know what is expected of them come December 1st. We need some leadership...

Another look a the "Part-time" legislature question

You may have received a letter similar to this one back in May.  I have revised it a little and updated you with new information about the issue. I hope you find it useful.  At the bottom is an invitation for you to write back with your thoughts.

It is no secret, in fact it is a matter of public record; legislators in Michigan make $79,650 per year plus $12,000 per year in tax-free "expense reimbursement." They are the third highest compensated lawmakers in the nation.  In addition, they enjoy quality health care and retirement benefits after only six years work. Lawmakers have all year to meet and pass new laws. Michigan is one of only five states without a deadline on its Legislature to finish their work. Even though lawmakers may meet all year, over the last ten years they have averaged only 92 session days per year.
 
Most states have part-time legislatures.  Texas, for instance, which has a much larger population and land area, is part-time. They meet for 140 days every OTHER year and are paid about $17,000 annually including expense allowances.

Lawmakers in Michigan can be very busy and work lots of hours partly because they introduce and pass up to three times more laws than part-time states. That means more constituents who are unhappy with the ever-expanding government, and more interest groups lobbying for passage of new laws to regulate or tax others.

In spite of the fact that most cities, villages and townships and virtually all 550+ school districts need to have their budgets in place by June, the Legislature can seldom seem to get the state budget finished before August. This puts great strain on the locals as they are unable to plan until they know how much they are getting from the state.
 
This year, it looks like we may not get the budget done by the October 1 deadline.  We might have to pass a temporary budget to get us through the first few months of the new year. As of this writing, the House has approved a spending plan $2 billion larger than projected income.  This can only mean one thing: a tax hike.

One might ask:

1. If most states manage with part-time legislatures, why does Michigan need a full-time legislature?


2. If other states can find qualified individuals to serve in government for less money, why do we need to pay so much?


3. If the Michigan legislature meets less than 100 days per year, why does it take all year to get the work done?


4. Why do retirees get such generous benefit after only six years?

In March I introduced HJR H, a resolution to amend the state constitution that would require the legislature to finish its work in April each year. You can read the text of the resolution here:  These are the key elements of the resolution.

• Rather than pay legislators a full-year salary for 92 days work, let's pay them only for the days they work.


• Rather than let them take a full year to get the work done, let's put an April 1st deadline in place to be finished.


• Rather than pay them for expenses they never incur, let's reimburse them for ACTUAL mileage to Lansing and ACTUAL lodging if necessary.


• Give them adequate health insurance while they are in office, but no long-term insurance or retirement after they leave.

Since introducing this resolution, there has been much talk and several stories in the press but no action.  The leadership in the House has refused even to take it up. Meanwhile, the legislature is not getting its work done. In the House of Representative, we have passed spending bills $2 billion over projected income, putting us in position for a huge tax increase, while the clock ticks down to the last day of the budget year (September 30).  In spite of that, we only voted on one single bill this past week, a bill to approve a January 15th presidential primary.

We did some in-depth polling on the question of whether Michigan should have a time-limited legislature that is paid only for the days they work. The results were encouraging. But the only way Michigan will ever change the constitution to limit the legislature is through the petition process. That is something which requires tremendous grass-roots effort and extensive financial resources.
 
If this proposal makes sense to you, if you would be willing to support the effort with your time and resources, please send me a note at: part.time.mi@gmail.com. You can also get more information at http://parttimemichigan.googlepages.com.

Here is the press release Minority Leader Craig DeRoche put out November 9 regarding the vote last week to replace the service tax...

Businesses lose again

House Democrats again vote to increase taxes on job providers

House Republican Leader Craig DeRoche today strongly criticized the manner in which House Democrats raised taxes on Michigan job providers, hitting them with the second tax increase in the last month. “Democrat leadership abused their power, jamming a job-killing tax increase through the Legislature in the dark of night,” said DeRoche, R-Novi. “The vote last night was an arrogant display of incompetence. How many more bills are we going to have to revisit this year due to the haphazard way the House is being run?”

During the Nov. 8 session, House Republicans fought to repeal the state service tax, offering changes and asking for open debate on the floor. The Democrat majority, however, refused to even acknowledge a Republican amendment turned in with the support of 34 Republican signatures and also failed to recognize Republican requests for a recorded vote on immediate effect, a requirement honored in both chambers. “They violated our constitutional right to represent our constituents, and as a result, Michigan businesses lost,” DeRoche said. “This is the same scenario we’ve seen all year for how Democrats are going to get things done – late at night, hurried and without regard for House rules or the state’s constitution.”

DeRoche said because of the rush, 60,000 businesses will shoulder the 33 percent tax increase burden.

Here is the press release Minority Leader Craig DeRoche put out November 9 regarding the vote last week to replace the service tax...

Businesses lose again

House Democrats again vote to increase taxes on job providers

House Republican Leader Craig DeRoche today strongly criticized the manner in which House Democrats raised taxes on Michigan job providers, hitting them with the second tax increase in the last month. “Democrat leadership abused their power, jamming a job-killing tax increase through the Legislature in the dark of night,” said DeRoche, R-Novi. “The vote last night was an arrogant display of incompetence. How many more bills are we going to have to revisit this year due to the haphazard way the House is being run?”

During the Nov. 8 session, House Republicans fought to repeal the state service tax, offering changes and asking for open debate on the floor. The Democrat majority, however, refused to even acknowledge a Republican amendment turned in with the support of 34 Republican signatures and also failed to recognize Republican requests for a recorded vote on immediate effect, a requirement honored in both chambers. “They violated our constitutional right to represent our constituents, and as a result, Michigan businesses lost,” DeRoche said. “This is the same scenario we’ve seen all year for how Democrats are going to get things done – late at night, hurried and without regard for House rules or the state’s constitution.”

DeRoche said because of the rush, 60,000 businesses will shoulder the 33 percent tax increase burden.

Term Limits and the January 15th primary are dead

The deadline for putting a January 15th primary election in place is effectively, tomorrow. When we finished last Thursday, it was announced that we would have session on Tuesday, November 13th. Many were doubtful that would happen. Sure enough, today it was announced that session for tomorrow is cancelled. The next scheduled session day is November 20. This is after the deadline date to put any issues on a January 15th primary.

There was a movement afoot to extend term limits in the State Legislature. Those who favored this idea wanted to put it on the January 15th primary election. Why? Because polling showed that while the majority of general election voters would oppose the plan, the smaller group of voters who would come to the polls in a primary election would favor it. Now that we know there will NOT be a primary election, the idea of extending term limits is dead for the foreseeable future.

As for the presidential primary, at this point it looks like we will instead pick our respective nominees in this state through a convention or caucus. Stay tuned for further developments.

Term Limits and the January 15th primary are dead

The deadline for putting a January 15th primary election in place is effectively, tomorrow. When we finished last Thursday, it was announced that we would have session on Tuesday, November 13th. Many were doubtful that would happen. Sure enough, today it was announced that session for tomorrow is cancelled. The next scheduled session day is November 20. This is after the deadline date to put any issues on a January 15th primary.

There was a movement afoot to extend term limits in the State Legislature. Those who favored this idea wanted to put it on the January 15th primary election. Why? Because polling showed that while the majority of general election voters would oppose the plan, the smaller group of voters who would come to the polls in a primary election would favor it. Now that we know there will NOT be a primary election, the idea of extending term limits is dead for the foreseeable future.

As for the presidential primary, at this point it looks like we will instead pick our respective nominees in this state through a convention or caucus. Stay tuned for further developments.

5 ways to move Michigan forward

Over the past several months, I have pointed out numerous cases of mismanagement and waste in state government.  At times, I have offered solutions as well. But for those who have missed some of the positive suggestions, here is a summary of five ideas that if implemented, would move Michigan in the direction of becoming a state where more people come to live, create jobs and raise a family.

Toward a Better Michigan...

1. Enact a Part-time legislature


2. Pass the "Financial Accountability and Transparency Act"


3. Make Michigan a Right-to-Work state


4. Pass the Fair Tax


5. Create the "Foundation Grant for Higher Education"
   

1. The Part-time Legislature. Currently, legislators meet in session 92 days per year and are paid $79,650 per year plus $12,000 for travel expenses and generous health benefits that continue after retirement. We pass far too many frivolous bills.  Meanwhile, it takes us over six months to pass the budget. This year, we took until 30 days AFTER the budget year ended to finish our work.  We need a legislature that is mandated to finish its work by June 1st at the latest. Legislator pay should reflect the average of the typical full-time worker in this state. Benefits should end when our terms end. Read more here.

2. Transparency.  Five other states and the federal government have already done this.  This could be looked at as Google Government, or putting the state's check book on-line. Today, even legislators have a hard time getting details about budgetary expenditures. Under this legislation, we would create 10 million "watchdogs" who can, with a few keystrokes, find out how the bureaucrats are spending  their money. Do you think this will make the state more accountable? If the federal government can put $3 TRILLION on line, I think the state can put $43 billion up for easy review. Read more here.
 
3. Right-to-work (RTW). Simply stated, under RTW legislation, employers would be prohibited from compelling an employee to join or financially support a union as a condition of employment. This is a no-brainer.  In the last twenty years, virtually every NEW automobile assembly plant built in the United States has been built in a RTW state. While RTW states have added 104,000 new automotive manufacturing jobs in the last 20 years, non-RTW states have lost 130,000 jobs over the same period. RTW states are where all the population and employment growth is occurring, as well as the per-capita income growth. Read details here.  Additional information is available here.
 
4. The Michigan Fair Tax would revolutionize investment and job growth in this state. Under this plan, personal income tax would be repealed. All business taxes, including the business personal property tax would be eliminated. In its place would be a flat rate sales tax on all RETAIL purchases.  The cost of producing goods and services would come down significantly because all the taxes businesses pay would disappear. Individuals would save 4.35% of their taxable income and would no longer have pay withheld from their checks.  No need to file a state income tax return, either.  This restructuring of our tax system would make Michigan a jobs magnet. Read more here.
 
5. The Foundation Grant for Higher Education.  Today, the state spends $1.7 billion on higher education. We have no set policy in place, however.  Funding on a per-student basis at the 15 public universities in this state ranges between about $3,500 per student to over $9,000 per student. Meanwhile, because about 10% of the students who attend public universities in Michigan are not FROM Michigan, we are spending $170 million or so on students whose parents have never paid taxes in this state. Under the Foundation Grant, every graduating Michigan high school student would be eligible for about $5,600 dollars per year to be used at any one of the 15 public universities in Michigan.

They didn't just violate the rules...

They violated the Constitution. What they did tonight is strictly unconstitutional. Will you ever hear about this tomorrow morning? I hope so.

They didn't just violate the rules...

They violated the Constitution. What they did tonight is strictly unconstitutional. Will you ever hear about this tomorrow morning? I hope so.

They violated the rules, blatantly, twice

Under House rules, you MUST recognize the opposition for a record roll call vote if the minority turns in a written request with at least 22 signatures. We did exactly that on HB 5408, in fact, we had 34 signatures. They ran us over and did not recognize our written request.

Then, after they did that, they moved for immediate effect on the bill. We had previously turned in 34+ signatures to ask for a record roll call on immediate effect. Again, they ignored our request, in writing, and gavelled the immediate effect on the bill.

This is a disservice to the people of Michigan. You will probably never hear about it on the news, but the Democrats in majority have literally broken the law and truly disenfranchised millions of voters who sent 52 Republicans to Lansing to represent them. They have refused to allow us to represent them.

You are getting, well, you know what you are getting.

They violated the rules, blatantly, twice

Under House rules, you MUST recognize the opposition for a record roll call vote if the minority turns in a written request with at least 22 signatures. We did exactly that on HB 5408, in fact, we had 34 signatures. They ran us over and did not recognize our written request.

Then, after they did that, they moved for immediate effect on the bill. We had previously turned in 34+ signatures to ask for a record roll call on immediate effect. Again, they ignored our request, in writing, and gavelled the immediate effect on the bill.

This is a disservice to the people of Michigan. You will probably never hear about it on the news, but the Democrats in majority have literally broken the law and truly disenfranchised millions of voters who sent 52 Republicans to Lansing to represent them. They have refused to allow us to represent them.

You are getting, well, you know what you are getting.

We are adjourned!

This is literally a three-ring circus! They have adjourned us until Tuesday, November 13.

We are adjourned!

This is literally a three-ring circus! They have adjourned us until Tuesday, November 13.

We just passed HB 5408

Again. 32.9% surcharge on business taxes.

We just passed HB 5408

Again. 32.9% surcharge on business taxes.

HB 5408 is now on its immediate passage

The Dems in "power" violated the rules of the House. They had to pull the bill back. The assistant clerk, the one who knows what is going on, is livid. They are violating the rules of the House!

HB 5408 is now on its immediate passage

The Dems in "power" violated the rules of the House. They had to pull the bill back. The assistant clerk, the one who knows what is going on, is livid. They are violating the rules of the House!

Do-over!

In the words of Emily Litella, "Never mind!"

HB 5408 never happened.

Do-over!

In the words of Emily Litella, "Never mind!"

HB 5408 never happened.

House just passed 5408

A surcharge of 32.9% ON TOP of your business tax liability!

Oh, wait! They rammed the bill through and NOW they are asking for a reconsideration! They want to pull the bill back! They are the ones that passed it, with virtually no Republican votes. This is a circus.

House just passed 5408

A surcharge of 32.9% ON TOP of your business tax liability!

Oh, wait! They rammed the bill through and NOW they are asking for a reconsideration! They want to pull the bill back! They are the ones that passed it, with virtually no Republican votes. This is a circus.

They are confused

Majority asked to question the germaine-ness of an amendment that was withdrawn. You can't do that.

We tried to submit an amendment, with the proper signatures, they REFUSED to allow us any opportunity.

They are confused

Majority asked to question the germaine-ness of an amendment that was withdrawn. You can't do that.

We tried to submit an amendment, with the proper signatures, they REFUSED to allow us any opportunity.

Showtime

HB5408. Surcharge on the Michigan Business Tax. They just adopted a substitute. Don't know what is in it because they JUST introduced it.

Showtime

HB5408. Surcharge on the Michigan Business Tax. They just adopted a substitute. Don't know what is in it because they JUST introduced it.

Here we go!

HB4591 raising teacher certification fees...because they overspent and depleted the fund.

Here we go!

HB4591 raising teacher certification fees...because they overspent and depleted the fund.

But do check back later...

...because we still have to move a tax repeal and a replacement (most likely), a bill to fix the January 15 primary election, a bill to extend term limits for state legislators, and of course, the smoking ban in bars and restaurants.

But do check back later...

...because we still have to move a tax repeal and a replacement (most likely), a bill to fix the January 15 primary election, a bill to extend term limits for state legislators, and of course, the smoking ban in bars and restaurants.

For those of you who are still waiting for news...

Since Rep. Melton put up his amendment to the smoking ban at oh, about 6:00 p.m. we have done absolutely nothing. The amendment was headed for passage when they pulled it off and went to caucus. They finally came out of caucus about 20 minutes ago, but still nothing. We, Republicans are waiting patiently at our desks, afraid to leave lest they jump to the gavel and move a bill. And yet, we wait...and wait. Tick, tick, tick,

For those of you who are still waiting for news...

Since Rep. Melton put up his amendment to the smoking ban at oh, about 6:00 p.m. we have done absolutely nothing. The amendment was headed for passage when they pulled it off and went to caucus. They finally came out of caucus about 20 minutes ago, but still nothing. We, Republicans are waiting patiently at our desks, afraid to leave lest they jump to the gavel and move a bill. And yet, we wait...and wait. Tick, tick, tick,

Apparent Intraparty Gridlock!

Gridlock in the House is not uncommon. It is business as usual when the Dems and Republicans can't get along. But, when one party can't seem to get along with itself, now that's news.

I'm not saying the Democrats in the House aren't getting along, I can only report this: They were trying to move a bill sponsored by one of their own, Brenda Clack, to ban smoking in bars and restaurants. Along came an amendment to the bill by a fellow Democrat. The amendment was about to pass overwhelmingly when suddenly the board was cleared and they went into caucus. They have been in there well over an hour and a half.

Think about it; they can't push through a simple smoking ban bill. They can't even agree on an amendment! And we still have to address the repeal of the tax on services?!

I should have brought my sleeping bag.

Apparent Intraparty Gridlock!

Gridlock in the House is not uncommon. It is business as usual when the Dems and Republicans can't get along. But, when one party can't seem to get along with itself, now that's news.

I'm not saying the Democrats in the House aren't getting along, I can only report this: They were trying to move a bill sponsored by one of their own, Brenda Clack, to ban smoking in bars and restaurants. Along came an amendment to the bill by a fellow Democrat. The amendment was about to pass overwhelmingly when suddenly the board was cleared and they went into caucus. They have been in there well over an hour and a half.

Think about it; they can't push through a simple smoking ban bill. They can't even agree on an amendment! And we still have to address the repeal of the tax on services?!

I should have brought my sleeping bag.

Time out...let's talk about federal taxes for a moment

You gotta see this bill. Some of you have heard about Charlie Rangel's bill, commonly referred to as "The Mother of All Tax Hikes." Here is the text from a letter by Ways and Means ranking member, Jim McCrery dated October 25.

"At a bipartisan Ways and Means caucus last night, Chairman Rangel outlined his long-awaited “Mother of All Tax Hikes” legislation. The basics of the package are simple: This is the largest individual income tax increase in history.
The bill will add a 4% surtax on Americans earning more than $150,000 a year ($200,000 for couples). So, under Democrats’ plan, over the next few years, the individual income top tax rate in the United States will rise from 35% to 44%. By way of comparison, the other 29 Organization for Economic Co-operation and Development countries – basically other developed nations - have an average top marginal tax rate of 35.7%. In fact, only five OECD countries would have higher top marginal tax rates in 2011 than the United States if the Democrats’ bill is enacted.
This crushingly high tax rate will affect approximately 10 million taxpayers directly - including those who report business income, like small business owners and farmers - but the damage will ripple throughout our economy. Because small businesses and family farms often pay their income taxes as individuals, this is a massive tax hike on the engine that drives job growth in this country.
In addition, the surtax is on adjusted gross income, not taxable income. This sounds like a technical issue, but it means that Rangel’s bill will erode the value of a series of tax deductions – including for mortgage interest, charitable giving, medical expenses, state and local taxes, and the standard deduction. And, because the surtax kicks in at $150,000 for individuals and $200,000 for couples, the bill creates a monster of a marriage penalty."

Well, now it appears the Dems in Washington are trying something new. A big tax hike with a bunch of "offsets" or incentives to get members of Congress to vote for it. Read about it here, if you like.

http://mail.google.com/mail/?ui=1&attid=0.1&disp=vah&view=att&th=1162170ad970b859

Bottom line is it just makes the tax code that much more confusing and burdensome. The United States, bastion of freedom, home of the Boston Tea Party, is sinking into the mire while countries like...can I say it...France! outperform us on tax rates.

Time out...let's talk about federal taxes for a moment

You gotta see this bill. Some of you have heard about Charlie Rangel's bill, commonly referred to as "The Mother of All Tax Hikes." Here is the text from a letter by Ways and Means ranking member, Jim McCrery dated October 25.

"At a bipartisan Ways and Means caucus last night, Chairman Rangel outlined his long-awaited “Mother of All Tax Hikes” legislation. The basics of the package are simple: This is the largest individual income tax increase in history.
The bill will add a 4% surtax on Americans earning more than $150,000 a year ($200,000 for couples). So, under Democrats’ plan, over the next few years, the individual income top tax rate in the United States will rise from 35% to 44%. By way of comparison, the other 29 Organization for Economic Co-operation and Development countries – basically other developed nations - have an average top marginal tax rate of 35.7%. In fact, only five OECD countries would have higher top marginal tax rates in 2011 than the United States if the Democrats’ bill is enacted.
This crushingly high tax rate will affect approximately 10 million taxpayers directly - including those who report business income, like small business owners and farmers - but the damage will ripple throughout our economy. Because small businesses and family farms often pay their income taxes as individuals, this is a massive tax hike on the engine that drives job growth in this country.
In addition, the surtax is on adjusted gross income, not taxable income. This sounds like a technical issue, but it means that Rangel’s bill will erode the value of a series of tax deductions – including for mortgage interest, charitable giving, medical expenses, state and local taxes, and the standard deduction. And, because the surtax kicks in at $150,000 for individuals and $200,000 for couples, the bill creates a monster of a marriage penalty."

Well, now it appears the Dems in Washington are trying something new. A big tax hike with a bunch of "offsets" or incentives to get members of Congress to vote for it. Read about it here, if you like.

http://mail.google.com/mail/?ui=1&attid=0.1&disp=vah&view=att&th=1162170ad970b859

Bottom line is it just makes the tax code that much more confusing and burdensome. The United States, bastion of freedom, home of the Boston Tea Party, is sinking into the mire while countries like...can I say it...France! outperform us on tax rates.

While waiting to take your money, let's take more of your freedoms!

HB4163 "smoking ban in the workplace"

You may not smoke on your own property, if your property happens to be a restaurant, unless...it is a cigar bar, a retail specialty store, a casino...

There is a bunch of regulation attached to the bill about informing the public. Let's cut to the chase; this bill lays more regulation on businesses and takes away another slice of personal freedom regarding a legal activity and it infringes on private property rights.

While waiting to take your money, let's take more of your freedoms!

HB4163 "smoking ban in the workplace"

You may not smoke on your own property, if your property happens to be a restaurant, unless...it is a cigar bar, a retail specialty store, a casino...

There is a bunch of regulation attached to the bill about informing the public. Let's cut to the chase; this bill lays more regulation on businesses and takes away another slice of personal freedom regarding a legal activity and it infringes on private property rights.

Waiting for action

We have been sitting on the House floor since starting session at noon. Not a vote has been cast. Lots of caucus meetings and tax policy has met but we are still waiting for the shoe to drop. It looks like it will be a long night.

The lobbyists for the large employers of this state are holding a "gun to our heads" telling us, the service tax is bad, but not as bad as the surcharge on the MBT. "It's the best we can do", says a leading business lobbyist.

The inside story is that 70 large employers will benefit greatly by this shift, 150,000 or so small businesses will be unaffected because they do not pay MBT. 60,000+ businesses will get HAMMERED by this new tax shift.

Waiting for action

We have been sitting on the House floor since starting session at noon. Not a vote has been cast. Lots of caucus meetings and tax policy has met but we are still waiting for the shoe to drop. It looks like it will be a long night.

The lobbyists for the large employers of this state are holding a "gun to our heads" telling us, the service tax is bad, but not as bad as the surcharge on the MBT. "It's the best we can do", says a leading business lobbyist.

The inside story is that 70 large employers will benefit greatly by this shift, 150,000 or so small businesses will be unaffected because they do not pay MBT. 60,000+ businesses will get HAMMERED by this new tax shift.

Warning to businesses owners, you are about to get whacked

News Flash! Dateline - Lansing, MI

Tax policy is, at this moment deliberating on how to replace the service tax. They are going to assess a 32.9% surcharge on the final MBT tax bill of every business that pays MBT! In other words, if you qualify to pay MBT, (and you do if your total business activity is over $350,000), you can figure out your liability and then tack on an additional 32.9%.

UNLESS, you have a really good lobbyist or you are a really large company. Certain unnamed large Michigan companies will be exempted from this surcharge. And there is a cap on the surcharge of $2,000,000.

I just received a letter urging me to vote today for a "surcharge on the Michigan Business Tax equivalent to the revenue the services tax was intended to provide." The letter was sent by a consortium of large businesses in Michigan. You know who I am talking about, automotive, chemical, food, insurance...all the big guys who will either be exempt or can afford the bill for the short run.

Like I said yesterday, this is a choice between death and dismemberment. Stay tuned for further developments...

Warning to businesses owners, you are about to get whacked

News Flash! Dateline - Lansing, MI

Tax policy is, at this moment deliberating on how to replace the service tax. They are going to assess a 32.9% surcharge on the final MBT tax bill of every business that pays MBT! In other words, if you qualify to pay MBT, (and you do if your total business activity is over $350,000), you can figure out your liability and then tack on an additional 32.9%.

UNLESS, you have a really good lobbyist or you are a really large company. Certain unnamed large Michigan companies will be exempted from this surcharge. And there is a cap on the surcharge of $2,000,000.

I just received a letter urging me to vote today for a "surcharge on the Michigan Business Tax equivalent to the revenue the services tax was intended to provide." The letter was sent by a consortium of large businesses in Michigan. You know who I am talking about, automotive, chemical, food, insurance...all the big guys who will either be exempt or can afford the bill for the short run.

Like I said yesterday, this is a choice between death and dismemberment. Stay tuned for further developments...

Out of the fryin' pan, into the fire.

You have heard that the 6% tax on selected services, delivered primarily through a broadside slam on businesses, is in jeopardy. The $670 million hit on the "moms and pops" of Michigan is so bad, that even the governor has acknowledged we need to "fix" it.

On October 31st, the House Republican caucus courageously took the lead and released a list that shows how we can eliminate $670 million worth of government immediately, thus negating the services tax. The list is at the bottom of this post. It is really quite simple: either we take $670 million out of government, or we take it out of the private sector, the wallets of the working people of Michigan.

Well, it looks like the "fix" is in. The Democrats who are loathe to tell us anything about what they are planning, are apparently ready to "release the hounds" tomorrow. Looks like they will repeal the services tax and tie it to a new tax, probably an expansion of the Michigan Business Tax.

This is really an incredible series of events. The Dems are apparently blind to the fact that they are strangling the private investment and potential job growth in this state. On top of that, they don't seem to want to even ask for input from the Republican side of the aisle, let alone inform us in advance of what they are up to.

We have gotten used to having legislation rammed down our throats at the last possible moment. For two days this week, we have done virtually nothing. Today, the only vote we took was on a non-binding resolution to chastise the President for vetoing a water bill. Tomorrow, on the last day of session before we go on that important hunting break, they will drop in the bills to "fix" the services tax.

Watch this space tomorrow around lunch time as we go into session. As soon as I know what they are up to, I will let you know.

Meanwhile, you might want to contact your state representative and ask them to vote to repeal the services tax and then cut government, just like you have had to cut your family budget. Find them here: http://www.house.michigan.gov/find_a_rep.asp

Sales Tax Repeal Deficit Solution Options

--Five percent legislator pay cut - $600,000
--Michigan Business tax transition windfall* - $219,400,000
--Reexamine state employee benefits - $100,000,000
--Department of Information Technology Reduction - $10,000,000
--Competitively bid corrections services - $50,000,000
--Eliminate tax exemption benefiting prisoners - $3,000,000
--Streamline the Department of Community Health - $92,833,331
-Reduction to Healthy Michigan Fund programming
-Restructure Wayne County Community Mental Health
-Reform 19-and 20-year olds non-mandatory coverage
-Reform non-mandatory Medicaid caretaker coverage
-Invest more money into Medicaid fraud investigations
--Department of Human Services reforms - $109,499,998
-Four-year limit for able bodied welfare recipients
-Privatize daycare eligibility
-Daycare rate uniformity
--Stop new appropriations to 21st Century Jobs program - $75,000,000
--Eliminate the Community Service Commission Grant to train volunteers - $3,190,000
--Remove the increase to the Treasury Department to implement the new taxes - $8,900,000
--Continued reduction of public transit funding - $5,000,000

GRAND TOTAL in savings from the House Republican plan: $677 million

Proposed revenue from the 6% services tax: $614 million