No Michigan Tax Deal Is Ever Worth The Paper It Is Written On
Since our devious Governor and his RINO caucus pulled out all the stops to quash the HB 4001 decrements in the state income tax last Thursday, it has dawned on Michigan politicians that the optics of the SB 111 – 115 Dan Gilbertville tax breaks just got real ugly. You can’t hand $ 1.8 billion of state revenue over to politically connected developers after stiffing the public at large without gruesome consequences. This is going to decrement some Senators’ campaign finance committee balances.
No one should fault Speaker Leonard for putting HB 4001 up for a losing vote. Bottling up and fiddling legislation behind closed doors until a winning margin is assured is not an exemplar of government transparency. Brits and Europeans may regard such shifty back room shenanigans as the hallmark of sophisticated political process, but here in America constituents want to know exactly how they are being represented. Thursday’s vote told us more about the RINOs in the Michigan House than years of deceitful political media articles and reports.
Thank you Speaker Leonard for fostering genuine political transparency. Long overdue in Michigan.
It now appears that killing both tax reductions was the plan all along. Bridge Magazine and the Michigan Municipal League just launched a trial balloon to gut the Proposal A constitutional amendment of 1994. Proposal A limited the tax depredations of government employees acting through their local units of government, a popular activity in Michigan’s more leftward big cities and counties. The sales tax was increased 50%, but property owners got some constitutionally protected tax relief in return.
Local government employees and their Democratic political puppets want to renege on the 1994 Proposal A tax deal. Well, not entirely. Just the constitutionally protected property tax relief. No one is offering to restore the 4% sales tax rate. What was it JFK said about negotiating with the Soviets? “We cannot negotiate with people who say what’s mine is mine and what’s yours is negotiable.” Public employees and their subservient Democratic politicians have a lot of gall claiming that President Trump is a Russian stooge and a neo communist tyrant to boot.
The term ‘Dark Stores Loophole’ was created to suggest that vacant big box stores have lower, fire sale values when compared to occupied stores. True enough, but we are discussing assessments used to determine real estate, i.e. property, taxes. Not taxes on business activity. The two creative assessment methods used most often to loot shoppers are ‘construction cost‘ and ‘imputed lease‘ calculations. Each might be valid under some very limited circumstances, but both are entirely invalid when assessing big box retailers.