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:
  1. Five percent legislator pay cut - $600,000
  2. Michigan Business tax transition windfall* - $219,400,000
  3. Reexamine state employee benefits - $100,000,000
  4. Department of Information Technology Reduction - $10,000,000
  5. Competitively bid corrections services - $50,000,000
  6. Eliminate tax exemption benefiting prisoners - $3,000,000
  7. Streamline the Department of Community Health - $92,833,331
    1. Reduction to Healthy Michigan Fund programming
    2. Restructure Wayne County Community Mental Health
    3. Reform 19-and 20-year olds non-mandatory coverage
    4. Reform non-mandatory Medicaid caretaker coverage
    5. Invest more money into Medicaid fraud investigations
  8. Department of Human Services reforms - $109,499,998
    1. Four year limit for able bodied welfare recipients
    2. Privatize daycare eligibility
    3. Daycare rate uniformity
  9. Stop news appropriation to 21st Century Jobs program - $75,000,000
  10. Eliminate the Community Service Commission Grant to train volunteers - $3,190,000
  11. Remove the increase to the Treasury Department to implement the new taxes - $8,900,000
  12. Continued reduction of public transit funding - $5,000,000
GRAND TOTAL in savings from the House Republican plan: $677 million

Republicans in the House have the will to do this, do the Democrats?


wolflady48884 said...

Jenny will never allow it and no the Dems don't have the stuff it takes to get the job done.

dagomike said...

And when those projected savings come up short, is everyone willing to raise taxes mid-year?

Seems pretty cowardly to pass a tax, pass appropriations on revenue from that tax, then send a bill reversing the tax that you know will be vetoed, just to CYA.

Good job. Way to extend the debacle of 2007 further into 2008.

Anonymous said...

Why not elminate the new Michigan State Police headquarters and add another $45 million to the tally?

Adam said...


Although I do not agree with your social policy and the bills you have backed in those areas, I do agree with your economic policies.

However, I was wondering if you could do a post on your opinion of the term limit in Michigan.

I feel the great turnover that the state experiences every year leads to problems like this because of inexperienced legislatures.

What is your opinion on this?

Anonymous said...

Well after last week when Senator Bishop was on WOOD TV 8 and said that the State lacked strong leadership and that now that the Budget was done the focus would be on CUTS and REFORMS, Then this week he says that any Revenue from a Repeal of the Service Tax would have to be replaced. It looks like you cannot believe anything coming from the Senate. This is the perfect opportunity now for CUTS and REFORMS. The House has taken the LEADERSHIP ROLL here and has the FULL SUPPORT of the CITIZENS OF MICHIGAN. After getting stuck with the BIGGEST TAX HIKE IN MICHIGAN HISTORY is is about time we saw some CUTS and REFORMS to balance the rest of the budget. There certainly were not any in the one that was passed last week! We need to pull the rug out from under the TAX and SPEND Mentality in this Governor and her DEMOCRATS. Make them come back to reality and MAKE CUTS AND REFORMS like the rest of us have had to do!!! STOP FLEECING THE TAXPAYERS OF MICHIGAN!

Anonymous said...

Every Republican should be reequired to memorize these numbers and talk about them constantly along with why it would work and not affect public safety. You have to know the numbers.