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    Dillon's Dems pass new 33% tax hike and violate the Constitution for good measure


    By Nick, Section News
    Posted on Fri Nov 09, 2007 at 07:10:55 AM EST

    You know it's a sad day when Constitutional violations start to seem like old hat and just another trick of the trade for Michigan Democrats.  And for me, at least, that day is today.

    In a relatively late night of House session the majority party managed to push through a new tax-hike scheme on a 58-48 vote (all 56 Democrats present and accounted for voting YES with Gaffney and Rocca defecting with the other 48 Republicans present voting no) after ignoring a House GOP amendment that would have repealed the tax without a job-killing replacement tax.

    The same morning that Michiganders wake up to find news of an expected 4,000 more layoffs at Ford they also discover that Michigan businesses now find themselves staring down the barrel of a 33% tax increase.

    So much for making Michigan "business friendly."  Oh, and ethics?  Yeah, you can forget about those too.

    Read on...

    The Associated Press offers all the gory details:

    "This is a proposal that has a pretty broad base of support among the business community," said Tax Policy Chairman Steven Bieda, D-Warren, adding: "It doesn't have 100 percent support."

    ...Other business groups oppose any replacement tax and say if the revenue must be replaced, the surcharge on the MBT should be temporary and not fully make up for the $614 million the service tax was expected to generate for state government this fiscal year. They argue that 27 big companies would unfairly benefit because their tax burden would be capped, passing even higher taxes to 60,000 mid-sized businesses.

    "You had a bunch of businesses get together to vote 60,000 other businesses off the peninsula," said House Minority Leader Craig DeRoche, R-Novi, also complaining that Democrats wouldn't let Repubicans vote on an amendment to only repeal the tax, not replace it.

    Lets unpack those paragraphs just a little bit.

    A broad base of support, says Bieda.  Well then, it must be a good thing, right?  Hardly.  That just tells you how bad the Democrats original tax hike scheme really was.  In essence you had a few job makers and business groups get together and say `look, if you're going to kill us at least be humane.'

    The Democrats have a shotgun to job makers guts, promising a long, slow, painful death and they act like it's a victory when the job makers plead for them to make it quick and painless.  Sorry, Steve.  Doesn't work that way.  You don't hold a gun to someone's head, have them ask instead for a poison pill and then tell the police "hey, he wanted me to kill him... even asked for the poison!"

    Now the $2 million cap on the new Dem tax hike.  Sure enough, there are 27 businesses who escape much larger penalties here.  60,000 pay more than "their fair share."  The next time a lefty claims Democrats represent the working man, argue in favor of a progressive income tax or suggest the rich should pay more because they can afford to you now have permission to politely tell them to go take a flying leap.  

    And about that amendment... it's no secret here at Right Michigan that the House GOP has been pushing a package of spending cuts and government reforms for weeks now.  In total they amount to around $677 million in savings this fiscal year alone.  

    The newest iteration of the Democrat tax hike is about $614 million.  So the package represents more than enough savings.  

    Not that that stops Andy Dillon from complaining to the press that the Republicans aren't a part of the process, that they don't have any ideas, that they don't even have any cuts they want to pursue, etc. etc. etc.

    Yesterday evening as the House was considering the new tax hike scheme the Republicans attempted to introduce the amendment.  The Democrats simply didn't recognize them.  Does that make them hypocrites and liars when they talk about being inclusive, working in a bipartisan fashion and claim the GOP isn't a part of the process?  Yes.  But that's their prerogative as the majority party.

    But there's a trick here, friends.  If a group seeking to introduce an amendment rounds up a certain number of signatures from fellow House members then the amendment has to be considered.  The House GOP reached the signature threshold, presented it to the Dems and were promptly ignored.  That isn't majority party maneuvering, it's unconstitutional.  

    Remember back on March 22, 2007 when House Democrat Steve Tobocman said:

    "We are beginning a new era in the Michigan House of Representatives by holding our members to the highest ethical standards. The people of Michigan have spoken loud and clear. They refuse to tolerate a culture of corruption. House Democrats respect what our residents have to say, and we responded to it by strengthening our ethics policies in the House."

    Well, apparently Andy Dillon and Steve's House Dem colleagues don't.  And the result?  A new 33% tax hike on Michigan job makers.  

    Oh, since we're unpacking paragraphs, lets unpack that one too... a 33% tax hike on Michigan job makers?  Businesses don't pay taxes.  People do.  You and me.  And while the new tax hike might be better than the old tax hike for 27 companies it's a heck of a lot worse for 60,000 others.  And that's coming straight out of your wallet.  

    You can send your thank you letters to The Capitol, Lansing, Michigan, care of Speaker Andy Dillon.

    < A Time for Action | Is the joint primary dead? Mark Brewer and John Edwards sure hope so... >
    Display: Sort:
    Where is the media? (none / 0) (#1)
    by tenex22 on Fri Nov 09, 2007 at 10:01:11 AM EST
    Why isn't the MSM all over this? The Dems just do as they please, call the Minority leadership irrelavant and pass this piece of legislation on? Their actions are un-constitutional, this should have been headline news.

    Sen Schauer's office says... (none / 0) (#3)
    by geek49203 on Fri Nov 09, 2007 at 03:21:10 PM EST
    I just called my Senator's office.  In a humorous note, they referred to me as "Tim Walberg."  

    According to Sen. Schauer's staff (he's got some great staff people, even if you disagree with his politics), the Senate is pretty much in chaos on this one.  So, they couldn't give me an answer on the status of the Services Sales Tax (or whatever euphemism is being used to describe it), nor on any possible replacement.

    The services tax will die 'cause the Treasury can't implement it by Jan 1.  Sadly, they've got lots of other taxes in place that can be raised by Jan 1, and so it's a sure bet that will happen.

    If they kill the sales tax, but raise the SBT, then that means that I (a businessman) would have to pay more SBT, which means that I'd have to try to pass it along to customers.  At least with the Sale Tax, I could have an immediate (effective) price increase to compensate in the short-term.

    Of course, in the long term, sales tax or SBT, it's all the same, only with differing costs of compliance.

    And, I still have no plans to re-open my business open if the sales tax is killed.  

    Why am I not surprised. (none / 0) (#4)
    by KG One on Fri Nov 09, 2007 at 09:07:32 PM EST
    There used to be a talk show host in the area by the name of Mark Scott who was on the air until about 10 years ago.

    He used to have a saying to describe situations just like this one: B.O.H.I.C.A. (Bo-hica).

    .

    .

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    .

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    For those of you curious as to what it stands for: Bend Over Here It Comes Again


    Service Tax (none / 0) (#5)
    by Victor Laszlo on Sat Nov 10, 2007 at 10:09:49 AM EST
    Don't fix the service tax.  This is the Democrats' Frankenstein creation and they're going to have to live with it through the 2008 and 2010 elections.

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