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:

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


jef ballard said...

I'm amazed at how much you suddenly sound like me now Jack. Thanks for your consistancy in opposing the tax increases.

michael emlong said...

Screw granholm she is an idiot

Mike Hignite said...

Jack, this works fine for me. Thanks for taking the lead.

WCTaxpayers said...

What you have found is fine with me. Keep looking there is a lot more there to cut. As more people see the bare bone budget is a lie, the pressure grows. I hope people will check out if for no other reason than to see how angry people can get.

Rose Bogaert, Chair
Wayne County Taxpayers Association, Inc

Mark said...

Jack, It looks like the legislature missed one area of government that could be cut DMB !
Department of Management and Budget has its own budget and centralizes the budgets of all other departments but the dirty little secret is that they also charge a service fee to each department for the services they provide. So in essence they are stealing from all departments adding to there own bureaucratic budget !
De-Centralize DMB...

Anonymous said...

While a great many people through their comments want Granholm et al out of office, how many are willing
to do what it takes? Although I'm physically unable to go door-to-door to secure signatures for recalls, I sure would like to know where I can sign one.
By the way, when I worked for Wayne County Commission and Juvie Court, I was shocked to discover that the county pays anywhere from $3 to $6 or more for every dollar contributed to employee pensions. Also, the union jobs in Juvie Court are a joke. The Restitution Dept, because of the manner in which the work was assigned, it took THREE people about 2 hrs/day to process court orders. The entire process requires one person at less than 8 hours a day. The dept head was also the head of the union governing these employees. When one girl quit, the dept head and her boss quietly withheld from processing approx 1,000 juvie court orders to justify their request for a 3rd employee. Of course, being advised by a long-time insider in the county that Wayne County MI is as corrupt as Cook County IL----I am not surprised. And so it goes.

Anonymous said...

Forgot to mention, I think you provide a great service and I thank you for it.

daniel said...

How about Granholm's State Police HQ new unneeded building-put her up against the wall with this blatant tax dollar waste. Go generic Sec. of State signs instead of changing signs when new person is elected. There is no valid reason to have a persons name on those signs at taxpayers expense.Retirement and health care costs need to be inline with the private sector,this needs to be done NOW including all current employees and MEA members. Eliminate MESSA a parasitic waste of tax dollars.We all know the Governor has no ethics or morals,just lie after lie. Lets see if the Legistlators will rise above the lies and run this State like a proficient business.

Lisa said...

you "blown away" yet??