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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Tax Me Please!


    By Rougman, Section News
    Posted on Mon Jan 18, 2010 at 01:22:27 PM EST
    Tags: Taxation (all tags)

    The question should not be whether or not Michigan taxpayers would be willing to ante up more to government in the form of taxes. The question should be whether anteing up more in taxes will help or hurt the economy, help or hurt job creation, help or hurt the creation of wealth, or help or hurt the state of Michigan.

    A recent survey funded by the W.K. Kellogg Foundation found that

    a majority of 314 Michigan residents said they would support an increase in the sales tax to balance the budget and cut business taxes to create jobs.
    There was a day when I would have supported paying a bit more in taxes to turn things around. That was until I discovered that paying exorbitant taxes pushes the economy in the exact opposite direction.

    Consumer spending is what drives our economy. It is not driven by government bureaucracies or by the wealth confiscated to keep it afloat, regardless of how willing individual taxpayers are to give a little more. (Or, better yet, willing to require that other taxpayers give a little more.)

    The rules of economics are as steadfast as those of physics, particularly when dealing with huge sample sizes. The People's Republic of Michigan, with its 10,000,000 citizens, is an economy large enough to prove economic laws without a whisper of error. More taxation, whether given willingly or under the threat of jail, will do nothing but further impede economic growth in an economy already taxed as heavily as Michigan's is.

    Take an additional $10 from me a month and I will certainly spend $10 less. How will I pare my personal budget back by $10? It sounds manageable enough and it probably would be. I will buy a couple fewer cups of coffee, stay away from one high school sporting event, go without a snack of sunflower seeds on my next trip to Lansing, and let that inefficient furnace filter go another couple weeks.

    Voila! Problem solved.

    Except that each of these personal consumer decisions, multiplied by millions of other consumers all of whom have had a $10 bill removed from their wallets by the pickpocket of government, add up to a significant decrease in consumer spending which will do nothing but add further malaise to our Michigan economy.

    How many private sector jobs will be lost because of this?

    Being cooperative in the fleecing of our own wallets, as many survey participants seem willing to do, makes us nothing more than agreeable targets of government grifters who cannot return this money to the economy without cutting its effectiveness and efficiency.

    By definition, bureaucrats cannot improve these dollars' efficiency even if they wanted to (and many of them don't want to.) We might feel we are helping out by contributing to the greater good by voluntarily being taxed beyond a reasonable amount, but we are hurting ourselves and prolonging our economic predicament.

    Many Americans already spend nearly 50% of their incomes in the support of government. They do this through income taxes, property taxes, sales taxes, excise taxes, usage fees, and licenses, etc. In the grand scope of things perhaps it seems easy to find another small portion of income to toss into the government kitty.

    Can most of us survive another small tax in support of our government? Sure, but do we benefit the economy by doing so? The answer is no, of course, but that doesn't seem to matter an awful lot to people who scoff at economic certainties in the face of a benevolent government's well run public relations scam.

    < In the MACKINAC CENTER Sphere Today | Remembering Martin Luther King, Jr. >


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    Display: Sort:
    Spending (none / 0) (#1)
    by grannynanny on Mon Jan 18, 2010 at 01:30:49 PM EST
    How about paring down our government in proportion to the size of the population - especially in light of the fact that hundreds of thousands of people have left this state.  And I also see they are trying to "find" $30 million to fund the Pure Michigan ads.  In spite of tea parties and the backlash of the taxpayer - these idiots still don't get it!  STOP SPENDING!!!!!

    First steps. (none / 0) (#2)
    by LookingforReagan on Mon Jan 18, 2010 at 01:49:20 PM EST
    Two things that would go far to making first steps in repairing the damage done to Michigans economy are adoption of a Fair Tax system and passing Right to Work legislation. Once these two things are accomplished then we can begin to deconstruct the rest of the Progressive agenda that has been foisted on our state for to many years. Removing political cover for the protected class of state and public workers must also be in the package. The reduction of state employees from the current 56,000 to about 40,000 is a reasonable expectation. Privatising some state functions such as selling medium and minimum security prisons to private sector companies will save untold millions in tax dollars. Once the voters get serious about turning this state around the first two steps I have listed are good places to start. Pass those and the rest of the reforms that are desperatley needed will fall in place.

    Most of the smart people have left? (none / 0) (#4)
    by loungedaddy on Mon Jan 18, 2010 at 08:01:37 PM EST
    Guess we are in the minority now. Who else would stay here but us few who are sticking it out, and lots of pro-government fans?

    Theya re getting what they want. Every expanding government, and all the laws and taxes and programs that come with it.

    States like New Hampshire are looking better and better ...

    Tell me about it. (none / 0) (#5)
    by Rougman on Mon Jan 18, 2010 at 10:00:03 PM EST
    I love Michigan.  It is the land of my birth and nearly all of my family still lives here.  It is not my desire to leave, but this economy is so constricted that it squeezes productive and educated people out of it like water out of a wrung rag.  

    By this summer I might very well be living back in Texas.  You know, where men are men, women are women, and armadillos are found by the side of the road.  

    Getting back on the right track (none / 0) (#6)
    by tmbg1453 on Mon Jan 18, 2010 at 10:20:27 PM EST
    I like what Business Leaders for Michigan have put together: reduce the Michigan Business Tax and eliminate the personal property tax, consolidate government services, reduce the costs associated with public employees, and reduce the amount of government regulations.

    I think that would be a great start. We need to send a message that Michigan WANTS the jobs. You can read about their plan at www.michiganturnaroundplan.com

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