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    ACTION ALERT: House Tax Policy Comm considering repeal of Dem service tax hike


    By Nick, Section News
    Posted on Wed Nov 07, 2007 at 07:18:33 AM EST

    Is fiscal sanity on the comeback trail in Lansing?  It might look like that from a distance but don't be fooled just yet.  Yesterday the Senate Finance Committee voted to repeal the Democrats new $613 million a year sales tax on services after hearing devastating testimony from Michigan job makers.

    According to the FREEP:

    "This tax is going to kill me. If it passes, I'm moving to Indiana," testified Dan Cherney, who said he quit the tool and die industry to start a landscaping company in Warren. The tax is scheduled to take effect Dec. 1, and landscaping companies would come under it.

    "It would be a talent drain," said Tony Anthony of AKT Peerless Environmental Services in Farmington. He said the tax could force him to move to Cleveland.

    Others, such as warehouse operators, said they would be forced to lay off employees.

    The final committee vote on repeal... all 4 GOP members voted YES and all 3 Democrats abstained.  When asked about the Democrat voting behavior tax-hiker Gretchen Whitmer offered this to the Detroit News:

    "A simple repeal today is untenable, it's fiscally irresponsible."

    Then why, Senator, didn't you vote no?  No, wait, don't answer that... it's a rhetorical question.  Whitmer's already voted for the tax hike once, voted for the nearly $800 million a year income tax increase on struggling moms and dads and has consistently voted against cuts and reforms.  Obviously she doesn't want one more anti-growth pro-big-government vote hanging over her head if she can help it.  After all, she wants to be sworn in as Governor in January, 2011.

    But despite Whitmer's big government daydreams the repeal passed out of committee and is expected to come before the Senate as a whole very soon.  The juice appears, at this point, to be there for repeal now that everyone sees just how devastating the SMALL part of the overall tax hike on Michigan residents is really going to be.  

    The Senate is no cake walk, but it's the easy part.  The House is where things are dicey.

    House Minority Leader Craig DeRoche has been working this issue since the Dems first approved the nearly $1.4 BILLION overall tax hike and the caucus has proposed a list of $677 million in cuts and reforms for this fiscal year.  More than enough to repeal the tax hike on services completely without replacing it.  

    You can check out the list of proposed cuts here.

    But first things first.  Before Andy Dillon and his tax-hike crusaders consider spending cuts and reforms they're going to have to repeal the job killing sales tax hike.  The House Tax Policy Committee has been hearing the same sort of testimony all week, meets again today and could vote by the end of the week on a repeal.

    That's where you come in.  

    PLEASE Read on...

    Below you'll find a list of the House Tax Policy Democrats (the majority party) along with their office numbers and email addresses.  Please take five minutes this morning or this afternoon to fire off a note to each one of them and ask them to return to fiscal sanity, repeal the job killing tax hike on services and to immediately consider the House GOP cuts and reforms.

    This entire issue has begun to snowball and it's picking up speed.  It's time to speak out again, loud and clear.  We very seriously can make a difference if we're willing to commit five minutes of our day to saving Michigan jobs and protecting Michigan families.  

    Please contact:

    Steve Bieda
    Office: 517-373-1772
    Email: stevebieda@house.mi.gov

    Paul Condino
    Office: 517-373-1788
    Email: paulcondino@house.mi.gov

    Barbara Farrah
    Office: 517-373-0845
    Email: barbarafarrah@house.mi.gov

    Robert Jones
    Office: 517-373-1785
    Email: robertjones@house.mi.gov

    Jeff Mayes
    Office: 517-373-0158
    Email: jeffmayes@house.mi.gov

    Andy Meisner
    Office: 517-373-0478
    Email: andymeisner@house.mi.gov

    Tim Melton
    Office: 517-373-0475
    Email: timmelton@house.mi.gov

    Joel Sheltrown
    Office: 517-373-3817
    Email: joelsheltrown@house.mi.gov

    Rebekah Warren
    Office: 517-373-2577
    Email: rebekahwarren@house.mi.gov

    Coleman Young, II
    Office: 517-373-1008
    Email: colemanayoungii@house.mi.gov

    < The Results are In! | Wednesday in the Sphere: November 7 >
    Display: Sort:
    Almost a Done Deal... (none / 0) (#1)
    by triznik on Wed Nov 07, 2007 at 07:38:30 AM EST
    My connections in the Michigan Legislature assure me that the universally-despised service tax will soon be rescinded. It is unclear what will take its place, as there is not yet a bipartisan agreement on the appropriate mixture of spending reduction and "revenue enhancement" to balance the budget.

    I'm a victim? (none / 0) (#3)
    by geek49203 on Wed Nov 07, 2007 at 07:59:37 AM EST
    If this was the Daily KOS, I'd claim victim status and therefor be able to speak infallibly and without criticism...

    You see, I closed my business when this tax passed.  I wonder how many more little one-person businesses will likewise close?

    The main reason that the Legislature might want to kill this is that the Treasury, already short-staffed and struggling to implement the new Single Business Tax, now has 8 weeks (give or take) to implement the new Sales Tax.  

    Normally, such a new tax would have over a years' lead time.  The software needs to be written, the manuals printed, the seminars for CPAs and businesses held, and (most importantly) aid given to the various business software companies as they patch the accounting software (Peachtree, Quickbooks, and literally thousands of others).  

    Compounding this is the fact that we still don't really know who is covered under this tax -- for instance, a CPA might have some aspects be taxable, and some not -- and you see the chaos that is happening.

    In other words, this solution is UNWORKABLE in its current form.  It's bad government, even apart from the tax increase aspect.

    Sorry... (none / 0) (#6)
    by Brokeinmacomb on Wed Nov 07, 2007 at 11:48:39 AM EST
    Sorry the hear that as well. I feel like we are all bound and gagged and watching each other blink as we go down with the ship.

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