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?
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