Michigan’s 2% Service Tax

This past week, Governor Jennifer “Granola” Granholm, imported Canadian Democrat, announced that to get Michigan out of its budget deficit, a 2% tax on services would need to be imposed.  This is most likely to replace the small business tax that was removed this past year.

The problem is that this tax would still affect the small business owner.  Most small businesses provide services such as haircuts, snow removal, lawn care, and the like.  Since the economy is moving toward a “service-based” economy, this is particularly onerous.

One of the things about this whole affair that torques me off is that the State’s finances were not disclosed until after the election.  Whether you are a Democrat or Republican is not the issue – we, the voters, were denied the information that might have helped up make a decision of whether or not our elected officials were effective or not.

The next thing that gets me going about this is the threat that if this doesn’t pass the Legislature, state-funded services would be cut.  Road repair, police and fire services could be reduced.  What is this?  Blackmail?

This last really p****s me off!  Once again, the working stiff gets stiffed while our elected officials sit high, dry, and fat.  Here’s my proposal to our governmental officials:

  1. Go through each department and cut out the waste.  Non-essential services and duplicate departments such as the Redundancy Department of Redundancy should get the ax if not reduced.
  2. Corruption must be uncovered and stopped. This costs taxpayers millions in falsely awarded contracts.  We all know this happens in various state construction jobs, so quit turning a blind eye to it.
  3. Michigan is one of the few states that provides 4 years of benefits to Welfare recipients.  Most only provide 2 years.  Let’s get with the program – all those 2-year folks are heading to our state, and Joe Taxpayer doesn’t want to support them anymore.
  4. Reduce your own healthcare benefits.  If you are truly representing the common man, then you should also feel some of his pain.  Look at what is happening to Ford, GM, and Chrysler employees, and maybe you’ll understand.
  5. When was the last time your pay was cut?  In many corporations, if things get bad, the belt gets tightened, and salaries are frozen or reduced.  And underperforming staff was cut (we’ll get you in the next election…)

Maybe I’m being simplistic about all of this.  Maybe I’m not.  But I definitely called it when I stated that if the Democrats were (re-)elected, there would be new taxes.  And here in the State of Michigan, that’s exactly what is going to happen.

About Tom Roland

EE for 35 Years, Two Patents - now a certified PMP. Married twice, burned once. One son with Asperger's Syndrome. Two cats. Conservative leaning to the Right. NRA Life Member.
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2 Responses to Michigan’s 2% Service Tax

  1. Tom says:

    What we are seeing is a symptom of unfunded retirement liabilities. The crazy policy of promising lifelong health care to employees on a pay as you go system is catching up with us.

    It has already created havoc for the auto industry and now it is affecting our universities, school districts, cities and our state. Thus government needs more money for operations.

    Unfortunately, the public sector was strongly behind Granholm’s re-election. She is not about to turn on them and require them to make real cuts.
    Personal | 02.11.07 – 5:57 pm | #

    Overburdened tax payers get to pay more taxes now? Great economic plan.

    The old saying goes “businesses don’t pay taxes.” That is, the cost is passed on to the consumer. So Joe Average is getting stuck on this one, not eeevil American businesses.

    And I guarantee you that businesses unable to pass on the costs will close their doors. Boy, that helps the economy. Kind of like taking care of air pollution by forcing everyone to stop breathing.
    Jay | Homepage | 02.13.07 – 10:36 am | #

    My parents live in Michigan and I’m sure they’ll be upset to hear about all of this too.
    Little Miss Chatterbox | Homepage | 02.14.07 – 10:38 pm | #

    (chuckle)No harm Tom. I’m gonna post a story about Jim Blanchard next.
    Tom C | Homepage | 02.15.07 – 8:11 pm | #

  2. Pingback: Michigan’s Economy « Tom’s Fireside Chat

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