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What to do about the state budget?
The Michigan Legislature is struggling to complete a budget by Sept. 30. Senate Republicans have a plan that appears to be the basis for what will happen that calls for $1.2 billion in cuts.
House Democrats and the Governor have voiced opposition to some of the cuts but haven't decisively stated how they'd rearrange spending or raise revenues to avoid some of the cuts. One scenario suggests they want to extend Michigan's sales tax to services, not just products, and, to sweeten that change -- or at least make it less bitter -- they would seek to reduce the current 6% sales tax. What do you want the Legislature to do?
House Democrats and the Governor have voiced opposition to some of the cuts but haven't decisively stated how they'd rearrange spending or raise revenues to avoid some of the cuts. One scenario suggests they want to extend Michigan's sales tax to services, not just products, and, to sweeten that change -- or at least make it less bitter -- they would seek to reduce the current 6% sales tax. What do you want the Legislature to do?
Tags: budget, legislature
Replies to This Discussion
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Permalink Reply by Tuebor on -
Increase revenue to cover expenses. We have seen what tax cuts have done to Michigan. John Engler convinced us that cutting taxes was the answer to all government problems. Then he and the legislature used smoke, mirrors, and "borrowing" from special funds to make it look like we were doing OK. Reality begins to set in in the late 1990's but the smoke and mirrors continues.
The real world whacked us when Governor Jen takes over. And now we must find new revenue or we will win the race to the bottom of the heap. You can't cut your way to a better education or fix road potholes by laying off workers. And privatizing government programs doesn't cost the taxpayer any less, only lines the pockets of some at the expense of the workers.
How long before we look up at states like Mississippi and South Carolina and wonder where the Great State of Michigan disappeared to. We had the best schools, the best conservation department, the best roads, and the best jobs in the country. And we have p...ed it all away to prove "government is the problem."
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Permalink Reply by masonco on -
Face reality.
Unemployment in MI is 15%
MI population has declined by over 10%
There are fewer tourists with $ to spend.
Fewer employed people are able to buy more than needs. (decline in purchasing)
I was at a large mall downstate the week before school started. It was almost empty. I went by the local thrift stores in that area. Could not find a parking spot. How much sales tax is loss when people buy clothing under $3 vs new clothing that averages over $20.
This is a huge drop in sales tax revenue because people lack spending money because they have loss income.
Now what about all those who used to live in MI and no longer, pay
income tax
property taxes,
sales taxes,
purchase drivers licenses,
purchase hunting licenses (out of state hunting licenses are very high)
those people no longer support local charities, schools etc either because they moved out of MI.
Oh and the cycle continues. More businesses move out of MI because taxes are too high. More people become unemployed and spend less. More people move out of state.
To me, the answer is not to increase taxes, the answer is to get more people back into the state, those left here to have decent jobs that lead to a life long career. The tax revenues will increase naturally. Right now, the higher taxes go, the more it will encourage people to move away or have less $$ to spend.
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Permalink Reply by J M A on -
There's no such thing as a free lunch
Oh yes there is, and the government is going to great strides to make it 'freer'. Luckily there are three Democrats out there that are going to make darn sure that doesn't happen. Thanks Independent Joe!
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Permalink Reply by Max on -
"How long before we look up at states like Mississippi and South Carolina and wonder where the Great State of Michigan disappeared to. We had the best schools, the best conservation department, the best roads, and the best jobs in the country. And we have p...ed it all away to prove "government is the problem.""
Government IS the problem Tuebor. And I'm not saying the democrats OR the republicans. It's all of them. They have lied, misled, and squandered the wealth of America and then blame everyone else. Government creates and controls the system that we all live and work in. So yes, government IS the problem.
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Permalink Reply by CynicalRealist on -
Ok, I know this idea is probably a little to radical for most, but it would lead to alot of tax dollars and jobs. Decriminalize Marijuana, In my opinion this would raise tax dollars in three ways. First, It could easly become MI number one cash crop and would create much needed agricultural jobs. Second, It could be taxed and sold just like cigarettes or alchol. Third, it would take a great burdon off of our failing prison system, and save alot of tax dollars.(I read somewhere that 60% of prison inmates are incarcerated for "soft drug offences".)
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Permalink Reply by Angie on -
I say tax all food for this would make EVERYONE pay somthing.. Not just the people that drink pop or smoke, or drink alcohol. Enough all ready on the same old same old smokes and or alcohol this should be discrimanation to all drinkers or smokers its just not fair anymore.
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Permalink Reply by Ugly one on
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Tax of Food is the only fair tax that I know of. It depends how much tax you get is what you buy. If you eat Steak you pay more.
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Permalink Reply by Tuebor on
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Zannie,
Fast food is considered restaurant food and is already subject to sales tax.
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Permalink Reply by Max on
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"Well good. Let's extend it to pop, twinkies, potato chips and other empty calorie foods."
Watch out. Kool-Aid is next...
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