Senate throws Granholm's budget plan out the window

[blueradon]

I don't know about any of you - but if you have looked at woodtv.com - they posted a story about the Senate throwing out Granholm's plans that will hopefully close a hole in our budget, and once again the Republican-controlled senate tossed it out the window.

I'm just so frustrated with this because it seems that all anyone does in the Michigan Congress is complain - particularly Republicans because they obviously don't like Granholm. Not working on any form of a resolution or passing the budget is going to result in deeper cuts and throw ourselves in an even bigger mess than we have right now, and it just seems like this Senate does not care - yet they also don't seem to have a plan of their own to fix the budget.

So, WHAT'S THE PROBLEM?

Anyone else have thoughts on this? Frustrated? Not frustrated?

[Raildudes dad]

The Republicans showed absolutely no responsibility when they eliminated the SBT w/o replacement revenue. Both parties have to step up ot the plate and either increase revenue or cut services, pretty simple IMHO. But, both are too busy playing BS politics

[suydam]

The Republicans showed absolutely no responsibility when they eliminated the SBT w/o replacement revenue. Both parties have to step up ot the plate and either increase revenue or cut services, pretty simple IMHO. But, both are too busy playing BS politics

[BGIII]

The Republicans showed absolutely no responsibility when they eliminated the SBT w/o replacement revenue. Both parties have to step up ot the plate and either increase revenue or cut services, pretty simple IMHO. But, both are too busy playing BS politics

[gvsusean]

increasing taxes is just putting a band-aid on a gaping wound.... you have to start by assesing the REAL problem, its not; we dont have enough money coming in! The real problem is, we are spending more than we are making. next you asses why that is i.e. Michigan could not have always been in this budget crunch, so whats changed? If the problem is x and we realize that x is a terrible use of money we sever x. but if its y and y is worth keeping then we may have to raise taxes. I believe if the situation is honestly looked at there will be much more x then y.

[TheCityGuy]

Buearacracy is the problem. The State of Michigan is required by its Constitution to have a balanced budget. ALL legislators should know. Is the Governor and the Senate really telling us that they didn't forsee this crisis a few years ago.

They should have started 2-3 years ago with a program to review the efficiency and effectiveness of all State services to determine what should be cut, what should be consolidated, etc.

IMHO, I think Jenny is using the "service tax proposal" as a bargaining chip. I will be greatly surprised if the State of Michigan ever adopts a sales tax. The Rebpublicans played politics by eliminating the SBT without a new revenue stream and now Jenny's throwing it right back in their faces by proposing a tax on services.

You gotta love politics.

[Raildudes dad]

If you owned a small business and paid almost 2 times as much state income tax as your neighbor that earns an equal income but as an employee, you might feel differently about the repeal of the SBT tax. The only way to make these politicians (both sides) devise a new tax is to put a deadline on the current one and force action. We need a business tax that is fair to everybody. Simple as that.

[Raildudes dad]

They should have started 2-3 years ago with a program to review the efficiency and effectiveness of all State services to determine what should be cut, what should be consolidated, etc.

You gotta love politics.

[Greedo]

As an employee of a service sector company, Granholm's service tax proposal was the first step in completely destroying any hope for recovery in Michigan. It was blatently anti-growth and did nothing to resolve the state's problems--bringing more jobs in state.

Michigan NEEDS to shift its culture to one that encourages more small businesses and entrepreneurs. Taxing services sends a strong message to small businesses and startups,

[allbusiness]

Having done a lot of research on this topic over the past two months, I've discovered that michigan really is right in the middle when it comes to taxes on corporations and citizens. After several years of tax cuts (right up just prior to the SBT elimination) we were finally in a position to be able to compete as a state. We're certainly not "undertaxed" after the cuts of the 1990s, as some would have you believe. Nor are we overtaxed any longer (at least compared to surrounding states).

Then there's the recent revelation that a huge percent (did I hear 25%?) of state employees work for the corrections department. Is that true? If so, something is out of whack.

The SBT will have to be replaced with something. Hopefully something more fair to business owners. The plan put forward by the Grand Rapids Area Chamber of Commerce is a good starting point.

The basic theory of taxation is the more you tax something the less activity you should expect to see. Government should tax those things they want to stifle (cigarettes, liquor, etc.), and lower the taxes on the things you want to encourage. At least that's the theory....

Why then, with the service economy leading the way in Michigan, would anyone want to start taxing the one good thing we have going on? When is the last time the state legislature really looked at the spending side of the formula? Health insurance for teachers would be a good starting point. The rates they are paying are obscene.

Everybody talks about haircuts, greens fees and movie tickets, but that's peanuts. What about legal services, advertising, accounting services, auto repair, contractors, consulting services, etc.

Plus, it's typical government incrementalism. It's 2% this year and, who knows, 4% in 5 years, then they come back for an increasse in the sales tax to 7%.... it goes on and on.

Plus this new tax effectively shifts the burden to the end user -- you and me -- since service businesses who pay the sales tax will pass it -- and another 1% or more to administer it -- right on to customers. So their prices will increase AND you will pay sales tax on those higher prices.

Plus Gov. Granholm included a return of the "death tax" as part of her plan, too.

Frankly, I don't have any better solutions, but I'm pretty sure a new 2% tax on services isn't it. Michigan is going through a painful time as we adjust to a knowlege-based service economy. taking the apparently "easy way out" is not the only answer. </soapbox>

[FilmMaker]

Having done a lot of research on this topic over the past two months, I've discovered that michigan really is right in the middle when it comes to taxes on corporations and citizens. After several years of tax cuts (right up just prior to the SBT elimination) we were finally in a position to be able to compete as a state. We're certainly not "undertaxed" after the cuts of the 1990s, as some would have you believe. Nor are we overtaxed any longer (at least compared to surrounding states).

Then there's the recent revelation that a huge percent (did I hear 25%?) of state employees work for the corrections department. Is that true? If so, something is out of whack.

The SBT will have to be replaced with something. Hopefully something more fair to business owners. The plan put forward by the Grand Rapids Area Chamber of Commerce is a good starting point.

The basic theory of taxation is the more you tax something the less activity you should expect to see. Government should tax those things they want to stifle (cigarettes, liquor, etc.), and lower the taxes on the things you want to encourage. At least that's the theory....

Why then, with the service economy leading the way in Michigan, would anyone want to start taxing the one good thing we have going on? When is the last time the state legislature really looked at the spending side of the formula? Health insurance for teachers would be a good starting point. The rates they are paying are obscene.

Everybody talks about haircuts, greens fees and movie tickets, but that's peanuts. What about legal services, advertising, accounting services, auto repair, contractors, consulting services, etc.

Plus, it's typical government incrementalism. It's 2% this year and, who knows, 4% in 5 years, then they come back for an increasse in the sales tax to 7%.... it goes on and on.

Plus this new tax effectively shifts the burden to the end user -- you and me -- since service businesses who pay the sales tax will pass it -- and another 1% or more to administer it -- right on to customers. So their prices will increase AND you will pay sales tax on those higher prices.

Plus Gov. Granholm included a return of the "death tax" as part of her plan, too.

Frankly, I don't have any better solutions, but I'm pretty sure a new 2% tax on services isn't it. Michigan is going through a painful time as we adjust to a knowlege-based service economy. taking the apparently "easy way out" is not the only answer. </soapbox>

[krylonics]

Legalize marajuana which will reduce the prison population and tax it as high as cigarettes. If the state increases the so called "vice" taxes and decreases taxes on things that are seen as "virtuous" that would cause problems when that revenue dries up. I can see it now, people will quit and those who do not will find other ways of partaking in their particular vice and not paying the taxes. How can we rely on the state to decide what is moral and immoral when it comes to these very personal habits and lifestyle. I think its moral reprehensible to drive a Hummer, so lets bring back the gas guzzler tax. Sounds ridiculous to some of you I'm sure but others would likely agree with me. I saw some kind of tax increase coming years ago as I'm sure Granholm did, she has done much to fend it off. But what else can be cut? I guess we could follow Chicago and start selling our roads to for profit foreign interests, I'm sure were all game for that right?

[snoogit]

Legalize marajuana which will reduce the prison population and tax it as high as cigarettes. If the state increases the so called "vice" taxes and decreases taxes on things that are seen as "virtuous" that would cause problems when that revenue dries up. I can see it now, people will quit and those who do not will find other ways of partaking in their particular vice and not paying the taxes. How can we rely on the state to decide what is moral and immoral when it comes to these very personal habits and lifestyle. I think its moral reprehensible to drive a Hummer, so lets bring back the gas guzzler tax. Sounds ridiculous to some of you I'm sure but others would likely agree with me. I saw some kind of tax increase coming years ago as I'm sure Granholm did, she has done much to fend it off. But what else can be cut? I guess we could follow Chicago and start selling our roads to for profit foreign interests, I'm sure were all game for that right?