Tax Cut Showdown in Michigan
S E E D E D C O N T E N T
Michigan is sitting on a $13.4 billion budget surplus, and a debate over what to do with this windfall is showcasing the difference between Republicans and Democrats on tax policy.
Republicans who control the state Legislature want to cut taxes broadly for nearly everyone in the state. Democratic Gov. Gretchen Whitmer wants to increase spending and pass out corporate welfare for her favored political purposes, especially electric-vehicle subsidies.
Earlier this month, the Legislature passed a bill that would cut the individual income tax rate to 3.9% from 4.25%. The Senate Fiscal Agency estimates the income-tax cut would reduce revenue by some $1.09 billion in fiscal 2022-2023, the first full year these changes would take effect. Republicans also included a nonrefundable $500-per-child tax credit. The latter is much less economically desirable, and it costs $750 million to $800 million a year with little chance to recoup it in faster economic growth. But legislators figure this is political inoculation against Democratic attacks on rate cuts.
The bill also increases the tax exemption for Michigan residents 62 or older to $40,000 for individuals and $80,000 for couples. The exemption would apply to income from 401(k)s, IRA distributions, pension funds and other retirement funds.
The House also passed a bill to make a one-time payment of $1.5 billion toward various underfunded pension programs in the state. Michigan cities have some $11 billion in unfunded pension liabilities, and the state police system has $800 million or so in pension debt, so this plan merits passage in the Senate.
Ms. Whitmer has called the Republican tax bill “fiscally irresponsible” and unsustainable.” The Detroit News reported on March 3 that she had urged Republicans and Democrats to negotiate a compromise, and she may veto the bill.
The contrast with the Governor’s proposals is stark. Her $74.1 billion budget would be the biggest in state history and lock in new structural spending burdens. She wants $18.4 billion for K-12 schools, an increase of 8%, according to the Mackinac Center, a Michigan think tank. Some of her proposals omit charter schools, which serve some 10% of public school students in Michigan. That’s a sop to the teachers unions.
On tax policy, Ms. Whitmer opposes broad-based tax relief in favor of targeted subsidies for certain businesses. She wants $500 million for the Strategic Outreach and Attraction Reserve Fund, which offers subsidies to lure favored businesses to the state. That’s on top of the $1 billion in corporate welfare that lawmakers provided last year.
One winner was General Motors , which received more than $666 million in incentives to make electric vehicles and batteries. Ms. Whitmer also wants $50 million in state rebates for electric-vehicle purchases.
Use of the tax code for social goals is a bipartisan problem, but the GOP proposals are fairer and better for the Michigan economy. They are also a better way to deal with a revenue surplus than building a bigger social and corporate welfare state.
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Witmer wants to buy votes and serve the Teachers Union. Democrats have mastered the game. That's how they have stayed in power in all of our major cities even though our cities have been going backward for decades.
Some conservatives 'bend' everything to their whim. Wow! Some republicans and conservatives tout liberty and freedom (for themselves) like its everybody trying to 'take' what's rightfully theirs: all theirs. The error here is nearly everybody in the country puts into the treasure, wealth, and power (fund) of this country. Don't let these "yahoos" deceive you. This country has always been the property of the people-all of the people-who are blended into it! Not these big shit talkers who delude themselves to think we should all be under conservative leadership and rule.
Some Democrats have the fiscal sense of a rock; and believe the only way of doing things is to spend like a drunken sailor on shore leave- and then demand more money from tax payers. Did you even bother to read Whitless' proposed plan?
Whitless will waste Michigan's surplus on her leftist wish list and kickbacks for teachers unions; then subsidize the leftist moronic dream of electric cars. This is Michigan come first snow fall all the electric vehicles head to the garage and stay there until late spring or early summer. If she wasn't so damn brainless she would know that just by being stuck in traffic on one of Michigan's worst highway systems that she promised to fix (we are #1 at bad roads. Doesn't matter who is governor). Her plan isn't sustainable; and will cause the state to have to raise taxes again to continue her reckless spending.
The Republican plan raises all ships. Whitless' plan is just more unfunded spending and paybacks to Democrat whores.
Watch out for the mental "ropa-dope," These republicans want to control spending on conservative causes and 'managing' the lives of the citizenry: that is, create more conservatives by hook or crook (using state funds). Democrats are trying to aid the entirety of the populace bottom up to top, including poor republicans and conservatives, also being better stewards of the planet which is in dire straits right now. Right the wrongs-Democrats. Let the wrongs done to whole swaths of the citizenry stand-Republicans.
You think a tax break for everyone is "controlling spending on conservative causes and 'managing' the live of the citizenry". How are Republicans going to control how people use their money from a tax break? Can't hardly wait to hear this.
Did you read Whitless' plan- take a long hard look at it. It is nothing more than unsustainable spending that will not only destroy the surplus; but require increased taxes in a year or two to sustain her yearly spending increases. Not to mention they are only kickbacks to Democrat whores. Try actually looking at the plan before making baseless comments.
Who the heaven are you calling "whores"?
So what is wrong with giving a company a break for moving to the state.
That is something right wing people have been doing for a while. Now all of the sudden it is a bad thing?
Also what is wrong with having a surplus. Leave it alone. Just because there is a surplus does not mean the republicans should run around screaming lower taxes and keep cutting taxes.
There will no longer be any surplus or any rainy day fund.
What is pandering or 'buying' votes is the keep lowering taxes thing.
Tax cuts, huh? That is all the GOP knows. Here in Ohio the GOPERS tax cut everything and us 'Joe bag of donuts' folk simply can't afford them anymore. Hell, we even have 'fees' on getting your dog a haircut.
That is the only thing I ever hear them say.
Cut taxes, cut taxes...
Sometimes I think they don't want to have any state or the country fiscally sound.
They don't. They want all of the wealth and power in one spot. And then they'll be 'the grocery clerks' for the spot holders.
Oh, they want the states to be financially sound, stable, and utterly conservative too. The so-called principle involved here: stay the course of 1776: "Rugged Individualism" to a (conservative programmed) fault. Show no regards to the fact that this country does not and can not possibly ever be in that 'state of being' in the succeeding periods beyond that 'age.'
It utterly ignores the truth that this world is technologically advanced, because of a collective intellect of millions of people flowing through a 'diversity pipeline." Some would have all the wealth flow through the hands and pockets of those who manage (hook or crook or by displaying great "suck-up" power) to keep just the 'right' type of people in receipt of it.That is, some conservatives do not or may not mind people of color in their party as long as they know their place: Under conservative chosen elites.
It is time for us to all them out when they put their, "we're the (bread) winners" and "you're the (taker) losers" mentality on display. They are no more (and may be less with their need for electoral college power because of 'narrow' populations and lack of citizen gains) than anybody else with (1) a seat at the nation's table.
Sorry. The 'conservative boot strap thing' is and has always been BS.
Here we are a nation "obliged" to help the world out of its (wars and rumors of) wars: billions upon billions to Afghanistan (hook or crook); now, billions upon billions to Ukraine (hook or crook) and nary a complain from or cries of abuse from the bi-partisan distributors of funds. So what do they (the usual suspects) do? They turn their attention on making 'pincer' moves on the blue states' (not their own) that 'utter forth' to help make collective international donations of funds (and all sorts of hardware) possible to victims of cruel dictators (in remote places all over the world). It's simply unbelievable! Some conservatives, you all would be laughable, if this kind of 'treatment' y'all put forward to your own givers in this country was not damnable!