Saturday, December 01, 2007

Uphill Battle All The Way

Sometimes, I feel like Sisyphus. He was an ancient king of Corinth who was condemned by the gods to push a huge bolder up a hill only to have it roll back down for him to begin again. I am sure that other taxpayers in Michigan feel the same way. Just when we think we are making some headway with tax increases, government comes along rolls another tax right by us.

There were few people in the tax movement that did not realize that the recently passed increase of sales tax on some services was a bad idea. Certainly, they recognized it before most of our legislators. When the legislators finally catch on, what is their response? According to Rep. Jack Hoogdyk , "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."

Now I know that I have made this point many times before, but business does not pay taxes, people pay taxes." All these taxes will get passed on to the consumer. If business can be more competitive in another state, they will go there. If there workers can pay less taxes and keep their job they will follow. The legislature, while making bookkeeping easier for some businesses, helped their cash flow and additional costs, they have just shifted the cost to other businesses. They in turn will pass it on to us. So what have they done for taxpayers? Nothing.

This is too important to let this stand. We can not let a bunch of self involved politicians drive this state into deeper despair and recession. It will be ten years before the surtax is set to expire. I am sure that they will not let that happen unless we force them. Lets keep he pressure on them to reduce our taxes and make this state a place where people want to come to do business and take a vacation.

1 comment: said...

Amen. Linked in Monday's In The Sphere column!