MI Morning Update: Deal reached on repealing MI Dem's Service Tax
By saul anuzis Posted in Michigan Republicans | Republicans | Service Tax | tax reform | Tax Repeal — Comments (0) / Email this page » / Leave a comment »
341 Days until Election Day
MORNING UPDATE:
The legislature and Governor have apparently reached a deal on the repeal of the sales tax on services. Reportedly, it is a 21.9 percent surcharge on the Michigan Business Tax capped at $6 million with a 2015 sunset. About $100 million will be drained from the MBT's rainy day fund, according to sources.
Senate Republicans negotiated a 42% decrease from what the House Democrats passed…and got a net cut of $100 million on job providers…we’ll see.
BUT…why couldn’t Republicans and Democrats sit down and agree on structural reforms to fix these long-term problems?
Why couldn’t Republicans and Democrats come together to find ways to live within our means and balance the budget without raising taxes?
Why couldn’t we work in a bipartisan fashion to address the job climate in Michigan, reform our state government to make it more competitive and bring jobs back to Michigan?
Why is it that the Democrats talk about compromise but the ONLY solution…the ONLY deals…the ONLY acceptable compromise is accepting the Democrats position of MORE taxes, MORE government, MORE spending and MORE rhetoric without addressing the structural problems we face?
The Democrats have NOT…and are NOT willing to do what it takes to turn Michigan around. I wish there was room to work together, but I fear until we have a Republican Governor and a Republican legislature willing to deal with the long term, structural issues challenging our state…we’re in trouble.
Getting rid of the Democrats sales tax on services was important…but all we did was shift it to another group of taxpayers rather than deal with the structural problems. Another short term fix.
The absence of leadership in Lansing seems to be astounding.
On the federal level, Congressional Democrats reached a deal on CAFÉ auto fuel standards that made some compromises on the implementation of these standards as Michigan lawmakers pushed for a more realistic approach. Hopefully a glimmer of good news.
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For complete post go to: http://migop.blogs.com/blog/2007/12/articles-of-int.html
Saulius "Saul" Anuzis
Chairman
Michigan Republican Party