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.
Thursday, November 29, 2007
No session today
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.
Be prepared to start paying sales taxes on certain services on Saturday.
Wednesday, November 28, 2007
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.
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.
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.
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.
Tuesday, November 27, 2007
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.
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.
Monday, November 26, 2007
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...
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?
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.
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.
Wednesday, November 21, 2007
"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."
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!
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!
Wednesday, November 14, 2007
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...
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:
- If most states manage with part-time legislatures, why does Michigan need a full-time legislature?
- If other states can find qualified individuals to serve in government for less money, why do we need to pay so much?
- If the Michigan legislature meets less than 100 days per year, why does it take all year to get the work done?
- 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.
Monday, November 12, 2007
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.
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...
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.
Toward a Better Michigan...
- Enact a Part-time legislature
- Pass the "Financial Accountability and Transparency Act"
- Make Michigan a Right-to-Work state
- Pass the Fair Tax
- Create the "Foundation Grant for Higher Education"
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.
Thursday, November 8, 2007
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.
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.
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!
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.
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.
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.
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.
"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.
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.
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...
Wednesday, November 7, 2007
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
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
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
Taxpayers beware! A tax "shift" is coming
The House of Representatives has been very quiet so far this week, too quiet. It has been made painfully clear to anyone who is listening that the new tax on services will devastate what is left of the economy in this state. Everyone knows we need to address this issue quickly as the clock ticks down to the December 1st implementation date. Yet, the only action taken today on the House floor was a resolution criticizing the President for his veto of a water bill.
Lately, the Dems have kept us mostly in the dark about their plans. Word on the street is that on Thursday at noon, they will introduce their "fix" to the service tax. Our concern is that we will be shifting the businesses in Michigan from "death to dismemberment".
We don't really know for sure what they have planned, because they haven't told us. This much seems certain, the service tax will be repealed and tied to a replacement.
Now is the time for action. Please call your state representative and ask him/her to repeal the service tax and replace it with cuts to government spending. The House Republicans have unveiled a list with $677 million in immediate budget cuts, more than offsetting the revenue "lost" by repealing the service tax. To see the list, click here. The list is at the bottom of the post.
Legislators do give consideration to sincere, straightforward phone calls and e-mail messages. To find your legislator, click here.
Meanwhile, to monitor the "progress" of legislation on the floor Thursday afternoon, read the blog.
Tuesday, November 6, 2007
Are Legislators being consistent?
In the face of the budget crisis we are facing, there are two discussions taking place with regard to the legislature. One, legislators are overpaid, and their benefits are too generous. Two, legislators are too inexperienced and therefore, we should change term limits by at least letting them serve 12 years in the same house, rather than limiting them to only 6 in the House and 8 in the Senate.
What I find curious is the apparent inconsistency in the way these two issues are being handled. On the one hand, there are proposals out there to cut our pay by 5%, NOT including currently serving members. On the other hand, there is a proposal to change term limits to 12 years, used any way you wish, INCLUDING currently serving members. Isn't it interesting that when we want to cut our pay, we don't include ourselves, but when we want to extend our stay in the House, we DO include ourselves?
I don't think this dichotomy will get past the voters when and if these proposals show up before them in the ballot box.
Are Legislators being consistent?
In the face of the budget crisis we are facing, there are two discussions taking place with regard to the legislature. One, legislators are overpaid, and their benefits are too generous. Two, legislators are too inexperienced and therefore, we should change term limits by at least letting them serve 12 years in the same house, rather than limiting them to only 6 in the House and 8 in the Senate.
What I find curious is the apparent inconsistency in the way these two issues are being handled. On the one hand, there are proposals out there to cut our pay by 5%, NOT including currently serving members. On the other hand, there is a proposal to change term limits to 12 years, used any way you wish, INCLUDING currently serving members. Isn't it interesting that when we want to cut our pay, we don't include ourselves, but when we want to extend our stay in the House, we DO include ourselves?
I don't think this dichotomy will get past the voters when and if these proposals show up before them in the ballot box.
What I find curious is the apparent inconsistency in the way these two issues are being handled. On the one hand, there are proposals out there to cut our pay by 5%, NOT including currently serving members. On the other hand, there is a proposal to change term limits to 12 years, used any way you wish, INCLUDING currently serving members. Isn't it interesting that when we want to cut our pay, we don't include ourselves, but when we want to extend our stay in the House, we DO include ourselves?
I don't think this dichotomy will get past the voters when and if these proposals show up before them in the ballot box.
Saturday, November 3, 2007
Ready to stick it to the taxpayer AGAIN
As of this writing, it looks inevitable that the ill-fated tax on services will be repealed by the end of next week. In a previous blog I printed a list of cuts that the Republican caucus published. It had about $670 million in immediate cuts. These cuts would allow us to repeal the service tax and replace it with NOTHING.
But I doubt there is enough political will to make those cuts. Look for an expansion of the Michigan Business Tax instead.
Now is the time to contact your legislators, especially those who voted for the new tax increases and tell them, NO MORE! Michigan cannot endure any more tax increases. It will lead us further down the path to the economic wilderness. With the thousands of additional layoffs announced by Chrysler, tax revenue will drop further. We need to start making cuts to government NOW.
Ready to stick it to the taxpayer AGAIN
As of this writing, it looks inevitable that the ill-fated tax on services will be repealed by the end of next week. In a previous blog I printed a list of cuts that the Republican caucus published. It had about $670 million in immediate cuts. These cuts would allow us to repeal the service tax and replace it with NOTHING.
But I doubt there is enough political will to make those cuts. Look for an expansion of the Michigan Business Tax instead.
Now is the time to contact your legislators, especially those who voted for the new tax increases and tell them, NO MORE! Michigan cannot endure any more tax increases. It will lead us further down the path to the economic wilderness. With the thousands of additional layoffs announced by Chrysler, tax revenue will drop further. We need to start making cuts to government NOW.
But I doubt there is enough political will to make those cuts. Look for an expansion of the Michigan Business Tax instead.
Now is the time to contact your legislators, especially those who voted for the new tax increases and tell them, NO MORE! Michigan cannot endure any more tax increases. It will lead us further down the path to the economic wilderness. With the thousands of additional layoffs announced by Chrysler, tax revenue will drop further. We need to start making cuts to government NOW.
Thursday, November 1, 2007
Repeal the Service tax!
The new tax on services, which is scheduled to go into effect on December 1st, would generate about $670 million in new tax revenue, while running many businesses into bankruptcy.
House Republicans have announced a list of specific cuts that can be made immediately to negate the need for the service tax. Here is the list:
- 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 news appropriation 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
Republicans in the House have the will to do this, do the Democrats?
Repeal the Service tax!
The new tax on services, which is scheduled to go into effect on December 1st, would generate about $670 million in new tax revenue, while running many businesses into bankruptcy.
House Republicans have announced a list of specific cuts that can be made immediately to negate the need for the service tax. Here is the list:
House Republicans have announced a list of specific cuts that can be made immediately to negate the need for the service tax. Here is the list:
- 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 news appropriation 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
Republicans in the House have the will to do this, do the Democrats?
A "Boondoggle" of massive proportions
Does it make sense for the state of Michigan to invest perhaps as much as $3 billion in taxpayer funds to build a bridge when a private investor is willing to build one at his own expense?
The Ambassador vs. the "DRIC"
For 75 years, the Ambassador Bridge has connected Michigan and Canada, serving as the ideal travel route for private and commercial vehicles. Fifty years after its construction in 1929, the Moroun family purchased the Ambassador Bridge and has operated it ever since. About one-fourth of the commerce between the United States and Canada crosses the Ambassador Bridge.
Since 9/11 the Ambassador Bridge has become the target of controversy. State government has argued that the Bridge is vulnerable to terrorist activity, and that the structure is outdated and insufficient for future transportation needs.
State government officials argue that the International crossing should be publicly owned and managed. That's why they're studying whether to build a bridge with your tax dollars. The Michigan Department of Transportation (MDOT) is calling it the Detroit River International Crossing (DRIC). MDOT has already poured millions of taxpayer dollars into a study in an effort to justify public expenditure for a new bridge even though the Ambassador is only at 58% of capacity and Moroun is planning to build a "twin" bridge next to the current one.
Owner Matty Moroun and his company have started the Ambassador Bridge Enhancement Project. Their plan is to build a six-lane bridge, running just west of the current bridge. This new span would connect directly to the existing Ambassador's plazas and could become a replacement for the current bridge. All this will be done without upsetting traffic flow.
Studies show that the twin Ambassador Bridge would cost Moroun less than $1 billion. On the other hand, the DRIC could cost up to $3 billion and be paid for by you, the taxpayers of Michigan with help from the federal government.
- Here are some facts about the Ambassador Bridge:
- It exceeds federal and state requirements for safety and security
- Is "over-engineered" as it was built to handle train traffic
- Has 24/7 video surveillance
- Is inspected every year
- Has had zero security incidents or shutdowns since 9/11
- Is 100% privately funded
On the other hand, the DRIC site:
- Would require up to $3 billion in state and federal tax dollars to finish all the studies, reconfigure the existing highway connections and infrastructure, condemn and purchse all the additional land, and erect a new bridge and new inspection stations.
- Would see a significant increase in tolls
- Is considered by both the EPA and the DEQ as "contaminated"
- Contains harmful chemical compunds which could damage the environment
- Is on top of several former salt mines where the ground may be unstable
MDOT's past bridge projects have shown poor design, flawed traffic projections, traffic jams and delays, and most importantly, taxpayers pay for it all.
Considering Michigan's current economic state, perhaps we shouldn't be investing billions of taxpayers' dollars in a project that a private company is willing to undertake at their own expense, especially when MDOT is saying we are underfunded for maintenance alone by as much as $1 billion.
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