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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    House Democrats raise taxes... AGAIN!


    By Nick, Section News
    Posted on Fri Sep 26, 2008 at 06:48:06 AM EST
    Tags: (all tags)

    Yesterday the Michigan House of Representatives and the Senate painted an awfully vibrant picture of the difference between sending Democrats or Republicans to the legislature.  It is nearly impossible to find a candidate these days that agrees with us on every issue one-hundred percent of the time, but even the GOPers we break with four times out of ten are going to do the right thing more often than not.

    Case in point, the wildly divergent approach to tax policy in Lansing.  The Associated Press reports on Thursday's Senate GOP led efforts to reign in the job-killing surcharge on the Michigan Business Tax.

    A Republican-controlled Senate committee on Thursday voted to phase out a surcharge on Michigan business taxes over three years... Phasing it out over three years would reduce revenue by $120 million in the budget year that starts next week and $660 million in fiscal year 2011-12.

    Senate Majority Leader Mike Bishop describes the move as the first step towards eliminating a Democratic passed tax increase that makes Michigan increasingly uncompetitive with job makers.  Jennifer Granholm trotted out Liz Boyd to tell reporters the plan was DOA unless Republicans also opened prison doors to let violent offenders loose on the streets.  House Speaker Andy Dillon responded too... technically.

    He'd like to kill the entire surcharge next year, he told reporters.  Well, not him, exactly.  Us.  He'd like us to do it via a "broader ballot proposal."  Translation: Democrats aren't going to vote to cut your taxes.  And, of course, we all remember what happened the last time Andy Dillon started talking about creating ballot proposals.

    Besides, the Democrats in the House had their own tax policy initiatives working through the legislative process yesterday.  Democrats voted yesterday to raise property taxes across the entire state.  You read that right.  8.9 percent unemployment and skyrocketing foreclosure rates amidst a worsening national financial crisis haven't deterred the left from making you pay more.  

    Read on...

    The vote was on House Bill 6162, sponsored by Representative Steve Tobocman.  Under the scheme those homeowners who are struggling to pay their mortgages would be granted a pretty sizeable tax break.  In fact, they might not only have their entire property tax liability waved this year, they could have it refunded retroactively for the last few years.

    Great idea, right?  I'll officially volunteer to be the last person to ever criticize real live tax relief, especially for those who are hurting under Jennifer Granholm's economy.  Unfortunately, with Michigan Democrats in the House it is never that simple.  These guys and girls are just plain sinister and they are always working an angle that screws the rest of us.  Some of our more intrepid readers may have even caught their devious little scheme right away.

    Providing property tax relief for those who live in poverty is a great idea.  Here's the catch... little things like school bonds are effectively in fixed amounts.  They're going to get their cash and they're going to get it through your property taxes.  That's just the way they're designed.  Let's put it in easy terms.

    Say you have an approved bond for one-hundred dollars and you have one-hundred homeowners.  Each homeowner pays one dollar.  Now lets say you want to exempt fifty of those homeowners from paying their share but the bond still, by law, will receive one-hundred dollars.  Suddenly the fifty who continue to pay the tax are paying two dollars.  Their liability just doubled.  Same principle at work here.

    The House Democrats plan grants "relief" to homeowners who are delinquent on their taxes.  They're demanding that the rest of us pick up the slack.  Because that $1.5 billion tax hike they slapped us with last year wasn't enough.

    Senate and House Republicans got together after the Democrats passed this cleverly disguised monstrosity and began pushing, again, the GOP Senate Economic Stimulus Plan and the House Homeowner Relief proposals.

    "Today's Democrat property tax increase is a blatant attack on Michigan families who are working hard and struggling to pay their bills on time," House Republican Leader Craig DeRoche told reporters.   (Interestingly, I haven't found anyone who's bothered to report on the GOP response this morning.)  "This is yet another example of inefficient, ineffective government, and it is time for change. The Legislature should be held accountable to the taxpayers, and in times of great strife, real reform is necessary."

    The Senate Republican Economic Stimulus offers immediate relief to home buyers and jumpstarts Michigan's sluggish housing market by increasing the Homestead Property Tax Credit from $1,200 to $1,300; provides substantial income tax relief for individuals; and gives relief to families having problems selling a home in the current market.  The plan passed the Republican-led Senate in March and awaits action in the House.

    The House Republican Homeowner Relief plan stops property tax increases if a home's value decreases; makes it easier to appeal a property assessment; and ensures that assessments reflect reality by requiring that the calculations used to determine property values be based on more current data and include foreclosures.

    None of the proposals spread liability or increase taxes on Peter while cutting them on Paul.  Which means none of the proposals will likely ever get a sniff of the House floor so long as Andy Dillon, Steve Tobocman, Robert Dean and their tax-hike caucus run the show.

    So what are we going to do about it?

    We can either get behind our House candidates this fall and do everything we possibly can to help Dan Tietema in Grand Rapids, Holly Hughes in Muskegon, Ray Snell in Jackson and the rest of the team... or we can scribble another big check to the Democrats in Lansing.  Choice is ours.

    < Allow Offshore Drilling, Work For Broader Plan | Friday in the Sphere, September 26 >


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    Display: Sort:
    A day late and a dollar short (pun intended). (none / 0) (#1)
    by KG One on Fri Sep 26, 2008 at 10:30:10 AM EST
    "Senate Majority Leader Mike Bishop describes the move as the first step towards eliminating a Democratic passed tax increase that makes Michigan increasingly uncompetitive with job makers."

    Great plan Sen. Bishop! Now, where was this resolve when we needed it last year?

    Showing a little backbone last year would've completely eliminated the need to even bring this up this year.

    As for HB 6162, while like the thought behind it (it was introduced to address schenagians in Detroit with tax breaks going to those who didn't deserve them), stiffing other taxpayers to pay for those who can't(/won't) pay, should've also been addressed in this bill.

    As it currently stands, this scheme is no better than the financial bailout package circulating in Washington that is currently in danger of falling apart (Thank you, Sen. Shelby).

    Watch the Herd (none / 0) (#2)
    by LookingforReagan on Fri Sep 26, 2008 at 12:29:26 PM EST
    If the vote on the Granholm tax shaft last year and the energy monopoly bill from last Friday are any idication we better hold on to our wallets. The Herd of RINOS will be getting ready to stiff us again. One thing that doesn't help in this state is the fact that a certain group of gutless Liberals in Conservative clothing keeps going along with whatever the Governor wants. Who speaks for WE the People? Obviously it isn't Mike Bishop. It isn't many other Republicans in the Senate or House. Bishop could have stopped so much of this by simply refusing to schedule the bills for a vote or keep them bottled up in committee. But he wants to play nice with Andy and Jen. So we are the ones that continue to get shafted by our own party. I for one will be in favor of only one plan. Repeal all of the Granholm/Dillion/Bishop tax increases and junk the entire tax code in this state. Second adopt the Fair Tax. But like the National Cesspool in Washington DC the Lansing crowd will never allow it to happen because it takes away their power to levy taxes on WE the PEOPLE. It takes away their power to pick our pockets every year.

    Oops - this already on the books, Nick & Craig (none / 0) (#3)
    by Hayekian on Sat Sep 27, 2008 at 03:18:44 PM EST
    From MichiganVotes:
    Passed in the House (60 to 44) on September 25, 2008, to establish specific procedures, standards, income caps and home value caps for a local government granting the principal residence property tax "poverty exemption" <u>allowed under current law</u>. A local government would be allowed, but not required to adopt an overall asset (net worth) cap, and would have to establish and publish income caps based on federal poverty rates. The bill was introduced after a scandal broke regarding Detroit granting these tax breaks to politically well-connected individuals who are not impoverished.

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