Post by ck4829 on Feb 20, 2017 4:22:03 GMT -6
What in the world are Republican lawmakers in Michigan’s House thinking?
A House panel voted 7-4 along party lines to send to the entire House legislation that would reduce the 4.25 percent income tax to 3.9 percent next year and then gradually eliminate it over several decades.
The sponsor, Republican Rep. Lee Chatfield of Levering, told the Associated Press that cutting the “work tax” would spur economic growth and allow people “living paycheck to paycheck to see meaningful tax relief. This allows them more buying power. It allows them to keep more of their hard-earned dollars in their pocket.”
But the reality is that is a bunch of bunk. A person making $50,000 a year would see a tax cut of $175 — about $3.37 per week. That’s hardly going to bail out people living paycheck to paycheck and is a very minimal increase in buying power.
But the impact on the state budget is huge — a reduction of $680 million next year and even more the next fiscal year as general fund money begins being shifted to road work and other tax cuts are implemented.
Gov. Rick Snyder, also a Republican, rightfully expressed concern about the proposal.
“I hope the House will be more deliberate before taking a full vote,” Snyder said in a statement. “It’s important that each representative has time to hear from their residents and allow them to weigh in before making a decision on a bill that will have statewide impacts for the next 40 years. I’d reiterate I have serious concerns about this bill.”
So do a number of residents who were polled for the Michigan Municipal League, a strong opponent of the tax cut. The EPIC/MRA poll of 600 Michigan voters has a margin of error of four points. The most telling poll question indicated that 74 percent of people oppose the idea of eliminating the income tax without a plan to replace revenue lost by the state.
Why would residents feel that way? Because they have good memories and remember those budget years when the state was using gimmicks to balance the budget each year while it was really deficit spending to the tune of more than $1 billion. Because they are tired of roads that are in horrible condition and cause damage to their vehicles and would rather see some of the extra money in the state budget go to solve that problem. Because they recognize Michigan pension plans for teachers and other employees are underfunded and know that some of this money could be allocated toward fixing that problem. And because they see funding for K-12 public education and Michigan’s universities and colleges as being more important than a $3.37 per week cut in their income taxes.
Local residents should let their lawmakers know how they feel about this proposal. Perhaps if there is a groundswell of opposition, Republican lawmakers will come to their senses. We sure hope so, because Michigan’s future financial stability and ability to keep its promises on road and bridge construction, among other things, are at stake.
www.ourmidland.com/opinion/editorials/article/Our-view-Tax-cut-will-not-provide-relief-but-10941995.php
Read more: burnoatus.freeforums.net/thread/583/tax-cut-relief-hurt-state#ixzz4ZDfv0vl8
A House panel voted 7-4 along party lines to send to the entire House legislation that would reduce the 4.25 percent income tax to 3.9 percent next year and then gradually eliminate it over several decades.
The sponsor, Republican Rep. Lee Chatfield of Levering, told the Associated Press that cutting the “work tax” would spur economic growth and allow people “living paycheck to paycheck to see meaningful tax relief. This allows them more buying power. It allows them to keep more of their hard-earned dollars in their pocket.”
But the reality is that is a bunch of bunk. A person making $50,000 a year would see a tax cut of $175 — about $3.37 per week. That’s hardly going to bail out people living paycheck to paycheck and is a very minimal increase in buying power.
But the impact on the state budget is huge — a reduction of $680 million next year and even more the next fiscal year as general fund money begins being shifted to road work and other tax cuts are implemented.
Gov. Rick Snyder, also a Republican, rightfully expressed concern about the proposal.
“I hope the House will be more deliberate before taking a full vote,” Snyder said in a statement. “It’s important that each representative has time to hear from their residents and allow them to weigh in before making a decision on a bill that will have statewide impacts for the next 40 years. I’d reiterate I have serious concerns about this bill.”
So do a number of residents who were polled for the Michigan Municipal League, a strong opponent of the tax cut. The EPIC/MRA poll of 600 Michigan voters has a margin of error of four points. The most telling poll question indicated that 74 percent of people oppose the idea of eliminating the income tax without a plan to replace revenue lost by the state.
Why would residents feel that way? Because they have good memories and remember those budget years when the state was using gimmicks to balance the budget each year while it was really deficit spending to the tune of more than $1 billion. Because they are tired of roads that are in horrible condition and cause damage to their vehicles and would rather see some of the extra money in the state budget go to solve that problem. Because they recognize Michigan pension plans for teachers and other employees are underfunded and know that some of this money could be allocated toward fixing that problem. And because they see funding for K-12 public education and Michigan’s universities and colleges as being more important than a $3.37 per week cut in their income taxes.
Local residents should let their lawmakers know how they feel about this proposal. Perhaps if there is a groundswell of opposition, Republican lawmakers will come to their senses. We sure hope so, because Michigan’s future financial stability and ability to keep its promises on road and bridge construction, among other things, are at stake.
www.ourmidland.com/opinion/editorials/article/Our-view-Tax-cut-will-not-provide-relief-but-10941995.php
Read more: burnoatus.freeforums.net/thread/583/tax-cut-relief-hurt-state#ixzz4ZDfv0vl8
