Worse Than a Tax Increase: A NEW Tax

The House recently passed HB 4293, which ostensibly legalizes many fireworks that are not currently allowed in Michigan. But, it imposes a $1,000 fee for any seller in a permanent structure, $600 for sellers in temporary structures (tents), adds 6% tax on top of the current 6% sales tax, requires a $10 million insurance policy and allows local municipalities to further restrict, through permit fees, the sale of fireworks. Only eight Republicans voted against the bill.

This is bad policy. For lawmakers to essentially say, we know you want this bill legalizing fireworks, and we know our neighboring states are selling fireworks, so we will legalize them, but use the opportunity to slap a huge new tax on this new entrepreneurial opportunity.

Oh, and here is a prediction: the parents of the first kid who gets burned by one of these new fireworks will sue for...$10 million.