Wednesday, December 19, 2007

Board of Canvassers Approves Ballot Language

PRESS RELEASE

from State Representative Jack Hoogendyk

December 19, 2007

Board of Canvassers Approves Ballot Language for Part-time Legislature

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

Ballot language includes the following provisions:

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

  • Legislators receive health care benefits only while in office.

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

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

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

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

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

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


###


Thursday, December 13, 2007

Transparency comes to Washington; why not in Lansing?

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

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

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


Transparency comes to Washington; why not in Lansing?

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

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

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

Business Owners in Michigan are at Their Wits' End.

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

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


Business Owners in Michigan are at Their Wits' End.

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

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

More government mismanagement, but at least its a surplus.

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

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

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

Sounds to me like we need transparency in government.

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


More government mismanagement, but at least its a surplus.

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

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

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

Sounds to me like we need transparency in government.

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

Wednesday, December 12, 2007

Great Lakes Water Package: Too Much Regulation?

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

Democrats Muddy the Waters

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Tuesday, December 11, 2007

Firefighters Presumption of Cancer Bill

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

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

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

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


Firefighters Presumption of Cancer Bill

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

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

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

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

More regulation of the building industry

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

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

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


More regulation of the building industry

Senate Bills 450-453 contain a laundry list of new restrictions, regulations and penalties:
  • Increase penalties for a person who operated as a residential builder or residential maintenance/alteration contractor without a license.
  • Allows for civil action against someone who is not licensed.
  • Allows DLEG, the attorney general or the county prosecutor to use forfeiture as a remedy.
  • Increases the annual builders license fees by 50%.

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

How Politics Works in Lansing

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

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

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

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

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


How Politics Works in Lansing

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

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

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

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

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

Friday, December 7, 2007

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

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

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

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

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

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


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

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

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

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

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

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

Thursday, December 6, 2007

Smoking Ban in Private Restaurants Passes the House

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

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

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

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

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

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

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


Smoking Ban in Private Restaurants Passes the House

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

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

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

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

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

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

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

Wednesday, December 5, 2007

Stricter regulations are coming

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

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


Stricter regulations are coming

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

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

Tuesday, December 4, 2007

Part Time effort gaining momentum

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

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

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

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

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

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

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

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

  • Pensions and lifetime medical benefits are eliminated

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

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

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

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


Saturday, December 1, 2007

Final Tally on HB5408 (version 8)

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

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


Final Tally on HB5408 (version 8)

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

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

This 22% surcharge has a sunset...

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


This 22% surcharge has a sunset...

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

Oh, and then there is the "Incompetence Tax"

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

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

Incompetent? That is an understatement.


Oh, and then there is the "Incompetence Tax"

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

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

Incompetent? That is an understatement.

The 2007-2008 budget is now DONE!

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

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

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


The 2007-2008 budget is now DONE!

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

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

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

Tax on businesses to go up 22% immediately

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

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

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

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

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