Finally, Something We Can Complement The Michigan Republican Party On, A State Tax Cut
Back in 2007 Governor Granholm and her compadres in the legislature, both Democratic and Republican, raised our state taxes “temporarily” from 3.9% to 4.35% to avoid a Michigan government shutdown. That was a whopping 11.5% increase. When they did so they promised all Michiganders they would roll back that increase to 3.9 percent starting in 2011. The law authorizing this increase actually had the roll-back written right into its provisions. It promised the following:
Beginning on October 1, 2011, and each October 1 after 2011, the maximum rate under this subsection shall be reduced by 0.1 each year,” reverting to 3.9% “on and after October 1, 2015.
On October 1, 2011, nothing happened. As Gomer Pyle would say “surprise, surprise”. Then on October 1, 2012, the Republican House, Senate and Governor all agreed to let the rate fall 1/10th of a percentage point and go all the way down to 4.25%. After that, they all decided that was enough of these pesky tax cuts and following the law so Snyder and his merry band of truth slayers and lawbreakers canceled the rest of the rollbacks.
Perhaps the Michigan Senate Finance Committee had read a piece I published last week and agreed with me. Yesterday they advanced a $2.3 billion dollar tax cut proposal. Senate Bill 768 is calling for:
- Michigan's corporate income tax rate of 6%, to be reduced to 3.9%. The Senate Fiscal Agency stated that would reduce tax revenue by approximately $465 million in Fiscal Year 2023
- A $500 non-refundable credit for each dependent under the age of 19. The Senate Fiscal Agency stated that would reduce tax revenue approximately $750 million to $800 million per year.
And finally, although 7 years late the Senate Bill 768 calls for:
- The decrease of Michigan’s personal income tax rate from 4.25% to 3.9%. The Senate Fiscal Agency stated that would reduce tax revenue by approximately $1.1 billion in the Fiscal Year 2023.
We hear the typical responses from the parties. According to reporting by the Detroit News Senator Aric Nesbitt, R-Lawton, stated that “We need to step up and help hardworking taxpayers, small business owners and our seniors and our working families”. You are exactly right Senator Nesbitt. Senator Stephanie Chang, D-Detroit, said “she was concerned about the "ongoing hit" to the state's finances the bill would cause”. She then said, “We can’t predict what our economy is going to look like in four or five years”.
You are also exactly right Senator Chang. If you are so worried about what our economy will “look like in four or five years” then why do you put programs and spending in place that goes on for eternity?
Senator Chang you just got caught with your hypocrisy down.