Vote for early repel of SBT is irresponsible
BRIGHTON – Mike McGonegal, candidate for the Michigan House from the 66th District, called the leadership in the House irresponsible and short-sighted after it voted today to move up the repel of the Single Business Tax two years ahead of schedule.
McGonegal called the House vote that went 64-36 an act of cowardice and irresponsibility because it fails to spell out the cuts that must be made to make up the $1.9 billon in lost revenue and because of the chilling effect it will have on companies and businesses who may be considering moving to Michigan.
McGonegal said Chris Ward should let voters decide the fate of the SBT on the Nov. 7 ballot because the uncertainty of how the tax structure will be rewritten is deterring more investment. McGonegal, who has more than 28 years of business experience as a manufacturing sales representative for the auto industry, said it left many businesses in limbo not knowing what the replacement for the complex tax that combines seven different taxes into one will cost them.
“There’s no problem with getting rid of this tax, but the problem is killing it with no idea of how to replace the revenue that helps pay for the infrastructure and services businesses want and need when they locate to an area,” McGonegal said. “It’s just irresponsible that one of the highest paid legislatures in the country can’t act responsibly to try and find a solution to the problems we face.”
Plans are for a committee to recommend how to replace at least some of the lost revenue, but that will not come until after the General Election. Making the painful cuts necessary to balance the budget after the election will insulate the Legislators from any accountability for their actions.
“This is just one more way that this Legislature has avoided responsibility for its actions that are primarily aimed at keeping them in power,” McGonegal said. “This decision is the real job-killer, and it will hurt businesses more than it helps.”
posted by Communications guru @ 3:14 PM
2 Comments:
I agree 100% that voters should decide the fate of the SBT. The legislature is playing a game in order to score political points, but the game they're playing affects the citizens of Michigan, the same citizens who have been left behind thanks to the GOP.
Our state is in the middle of the pack when it comes to business taxes, and this issue was not of more importance than health care, the number of police on the street, high gas prices and any number of problems. Why don't they get busy and do something for the people instead of working for big business and their Republican extremist friends?
Thank you for your comments, concerned person. I actually disagree and agree with you. Something as important as stripping $2 billon from the budget should be decided by either the people we elected or the people themselves. However, no one is doubting the SBT should go, but the problem is there’s nothing to take its place, In other words, we need a realistic timetable to come up with a real solution. The 2009 sunset was realistic, but frankly, the track record of this group in Lansing says they will not find a solution by Dec of 2007.
People like Chris Ward has soured and killed any cooperation and bipartisanship in Lansing so much that no meaningful solution will be found. Any business or company considering a move here will now hesitate until he knows what’s going to replace the SBT. Now, we have a tax where he knows what it will cost to do business. But with a new tax he has no idea what the cost of doing business will be, and it might hurt his particular industry.
I do agree with your assessment that our state is in the middle of the pack when it comes to business taxes, and this unwise, political move will hurt the entire state. I don’t want to be like Mississippi or Alabama that have the lowest business taxes. I don’t mind paying for important services that that make living in one of the best states in the union a pleasure.
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