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House Republicans strike a blow for fiscal sanityBy Nick, Section News
Bookmark this article. Then, the next time you're sitting around wondering if Lansing is paying attention to the activists (and the blogosphere) go to your favorites and come back to re-read it.
After much discussion in recent weeks about dissatisfaction with tax hike votes followed by yes votes on appropriations bills that actually spend the new tax dollars, the House Republican Caucus went on the offensive yesterday introducing a package of spending cuts that meets and exceeds the amount of money swiped from working moms and dads by Andy Dillon via a sales tax on services. That tax is projected to collect over $613 million. The House GOP has identified $677 million in immediate cuts and reforms and proposed them along with a complete repeal of the new Democrat tax. Read on...
Now the idea of repealing the tax isn't new. Business groups began mobilizing the moment it was passed in the early morning hours one month ago to the day. But the focus thus far, while Granholm and Dillon control the discussion, has been on finding a preferred alternative. They've discussed another income tax jump, they've discussed a progressive income tax on the ballot, they've discussed a general hike to the Michigan Business Tax... but every discussion has involved replacement revenue, a reflection of how devastating the House Democrat tax hike really was.
In effect you've got business agreeing "if you're going to shoot me will you at least shoot me in the foot instead of the head so I've got a fighting chance to survive?" Today's DetNews reports:
Oakland County Executive L. Brooks Patterson is to kick off a petition drive today to repeal the levy, which expands the 6 percent sales tax on goods to a mix of services starting Dec. 1. Patterson represents the business Coalition to Ax the Tax.
"She's wrong on all three points," Patterson said. "We should repeal it and not replace it with any new tax on business, because you can't tax your way to prosperity." After hearing from pro-job, pro-growth advocates like Patterson and the `sphere for weeks the House GOP is beginning to respond, hoping to ignite a rebellion in the Chamber. Craig DeRoche and the House GOP yesterday unveiled a plan that takes the gun out of the Democrats' hands completely. It doesn't just repeal the tax, it backs it up with real, substantive spending cuts and reforms. Props to the caucus for not giving up the fight and for taking a stand. The idea that we could face a fiscal crisis and emerge from it with $1.4 BILLION in new taxes and a BIGGER overall and BIGGER General Purpose / General Fund expense sheet than even last year is simply unacceptable. And it looks like the House Republicans agree.
Their list of proposed cuts includes:
1. Five percent legislator pay cut - $600,000
2. Michigan Business tax transition windfall - $219,400,000
3. Reexamine state employee benefits - $100,000,000
4. Department of Information Technology Reduction - $10,000,000
5. Competitively bid corrections services - $50,000,000
6. Eliminate tax exemption benefiting prisoners - $3,000,000
7. Streamline the Department of Community Health - $92,833,331
Department of Human Services reforms - $109,499,998
9. Eliminate the Community Service Commission Grant to train volunteers - $3,190,000
10. Remove the increase to the Treasury Department to implement the new taxes - $8,900,000
11. Continued reduction of public transit funding - $5,000,000
Revenue generated from the Service Tax: $614 million
GRAND TOTAL in savings from the House Republican plan: $677 million This is anything but a lock. Dillon and his whips will try to scuttle it and keep it from ever getting out of the gate. Holding the majority carries a lot of weight. But it's a big step, a signal, in the right direction.
House Republicans strike a blow for fiscal sanity | 3 comments (3 topical, 0 hidden)
House Republicans strike a blow for fiscal sanity | 3 comments (3 topical, 0 hidden)
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