Tag Archive for Commerce Clause

Second Highest Sales Tax in the Nation and Chasing Away Employers

They_screw_the_little_guyWell, that’s what the Snyder/Calley Ballot Proposal to raise the sales tax 16.7% is – Second only to California – and we all know (or should know) what a fabulous job creator environment California is, right? Can you say exodus? Yes, high taxes are a factor driving business away but, massive regulatory issues also plague them, which destroys jobs and their creators. Interestingly enough, and very similar to the Golden State, our One Party Rule majority in Lansing, is on floundering course to the same tax and regulatory environment as can be reviewed here.

Oh! Then there is this wee bit of judicial tax policy “intent” legislating from the bench.

The controversy involves 134 out-of-state companies doing business in Michigan. They sued to collect $1.1 billion in refunds they believed they were due under the 2007 law. If they prevailed, the loss would have created a large hole in the state budget.

happy-snyderThe Michigan Supreme Court ruled in July that IBM could receive tax credits under the old law.
….

Tricia Kinley, senior director of Tax & Regulatory Policy for the Michigan Chamber of Commerce, said she had not reviewed Talbot’s decision [Engler appointee], but the chamber believed the Supreme Court decision on the IBM case should have settled the issue. She said the chamber found it “utterly disappointing and stunning” when the Legislature and Snyder signed the law to “undermine” the high court’s decision.

“That sends a chilling message to job providers,” said Kinley. “You can try to have your day in court, but even if you go through the great pains of litigating and you win, the Legislature might pull the rug out from under you.”

A spokeswoman for Attorney General Bill Schuette, who defended the state in the case, referred questions to the state Treasury Department, where no one could be reached for comment Monday afternoon.

Surprised the top cop and the taxman hide from their retroactive thievery? Not really, as it has become standard operating procedure for those in today’s government, and an electorate with a 30 sec. attention span. Nevertheless, isn’t this refreshing to see someone at the Michigan Chamber of Commerce has the integrity to speak truth to power? I’m actually glad to see a woman wearing the pants at the chamber who boldly calls it the way it is without pulling any punches on The Big Spending Party.

Yes, Mr. Studley, we are directing this at you. It’s time for your leadership against $700 million more for non-road related spending.

Ps. Uh-hum, tis the season, you know? Until we’re proven wrong, res ipsa loquitor

You Betcha! (19)Nuh Uh.(1)

Maybe A little Mis-Read?

A Traverse City Retailer might well feel the pain of his misplaced good cents.

There will be more than a few legislators regretting their turkey moves of additional regulatory rules during the ‘lame duck’ session.

But its not just the legislators. ‘Exhibit A,’ might well be a story that ‘celebrates’ the “early Christmas present” that Front Street Traverse City business received via SB 569 and SB 658 on Friday Morning. Demonstrating that the lobbying efforts of a few rent seeking business interests are not at all in line with taxpayer interests, the piece on Saturday’s TC Ticker starts with the ‘celebration’ of the “main-street fairness” law:

“It’s been years in the making, but state lawmakers have handed brick-and-mortar retailers like Bill Golden and others throughout Traverse City and Michigan a welcome Christmas present. Starting in October, more online retailers will have to add on Michigan’s sales tax to customer purchases — just like Michigan retailers have always had to do.”

Of course, folks around here (and very likely in all other places) understand that what is sold as fairness is usually anything but fair.

You Betcha! (18)Nuh Uh.(0)

Kowall & VerHeulen Pushing MORE Regulation On Michigan

Big Box retailers have found foot soldiers willing to do bidding in HUGE rent seek.

Kowall-Verheulen-TaxersHeads up!

Word on the street is that HB 4202 and HB 4203 are on the schedule for second reading today in the Michigan House of Representatives. That means it would be up for FINAL PASSAGE tomorrow. You can read below all the details about the bills. Bottom line, if they are enacted, you will be paying MORE taxes.

Please take a moment and contact your representative today. Let your opinion be known! These phone calls and emails do matter. They do affect how a representative votes.

Find your representative’s contact information here.

We will keep you posted of the progress (or lack therof) of these bills tomorrow.

House Bills 4202 (Kowall-R), and 4203 (VerHeulen-R), will impose new taxes on consumers in Michigan and will further burden online sellers, especially the mom and pop shops that operate out of a small store front office or the business owners home. They will be subjected by government to an abundance of new compliance requirements. It will stifle competition as many smaller competitors to the big guys (like Amazon) will likely be forced to downsize or worse yet, go out of business.

You Betcha! (21)Nuh Uh.(6)