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Granholm, The Queen of TaxesBy DrDetroit, Section News
Our useless Governor who absolutely loves to raise taxes and is then mystified when tax revenue falls, forced upon us the Michigan Business Tax. With this truely lovely quote, "This is a good compromise that incorporates key elements of my business tax proposal. It is revenue neutral and fair." How revenue neutral is the MBT?
First, we need a baseline of economic activity. The easy way to judge such activity is by looking at the revenue the state collects from the Sales and Use taxes. Numbers are in millions. Information is from the Senate Fiscal Agency July reports of YTD collections in 2007, 2008 and 2009.
2007 2008 2009 The MBT was phased in during 2008. So there is an overlap of the SBT in 2008 and 2009. In 2007, there is only the SBT. From 2007 to 2008, the econimic activity in the State was growing. The State collected an extra $225 million in Sales Tax. Then came 2009. Sales tax collections dropped 10% and Use tax collections dropped 20%. From that, it is fairly easy to surmise that the economy slowed in 2009. So what did the fair, revenue neutral MBT do?
2007 2008 2009 Interesting that as economic activity in the state plummeted, the State collected more money from businesses. If the MBT was actually revenue neutral, the state should have collected less than the $1.3 billion collected in 2007. It is now easy to see that this is another Granholm lie and that the MBT is killing Michigan. Not to worry though, Granholm has a new proposal into the house to raise taxes. This time she does not claim its revenue neutral. Protect your wallet Michigan, it is going to be a rough 1.5 years.
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Granholm, The Queen of Taxes | 2 comments (2 topical, 0 hidden)
Granholm, The Queen of Taxes | 2 comments (2 topical, 0 hidden)
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