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fettpett
05-25-2011, 03:14 PM
http://www.freep.com/article/20110525/NEWS15/110525040/Gov-Rick-Snyder-signs-tax-bill-he-says-will-spur-growth?odyssey=tab|topnews|text|FRONTPAGE


Gov. Rick Snyder signs tax bill he says will spur growth
2:14 PM, May. 25, 2011 | 14 Comments

BY DAWSON BELL AND CHRIS CHRISTOFF

Groups knock Snyder on job efforts
Snyder to sign landmark tax bill today
Dismissing the steady rain outside, Gov. Rick Snyder declared today “a sunny day in Michigan” as he signed into law a comprehensive overhaul of the state’s business and personal income tax codes.

“It will create jobs,” Snyder said of the controversial initiative to scrap the old Michigan Business Tax, replace it with a 6% corporate income tax and eliminate dozens of business and income tax exemptions, including one that sheltered almost all pension income from taxation.

Michigan business owners “want to grow,” he said at a signing ceremony packed with business lobbyists. “People want to flourish. The marketplace works.”

The reforms, which go into effect Jan. 1, will result in a net business tax cut of $1.7 billion in the first full year of implementation, and a $1.5-billion increase in income tax collections.

The latter includes about $350 million from the pensions of younger and wealthier retirees, a provision largely responsible for opposition which nearly derailed the plan in the Legislature.

Some of that opposition continued today outside the governor’s office, where a group of public employees protested.

Earlier, Michigan AFL-CIO President Mark Gaffney said the tax reform is based on the failed theory of supply-side economics and won't create jobs.

Gaffney questioned whether a small coffee shop owner who receives a tax cut would hire someone. He said that depends on more business, and more business depends on customers having more disposable income.

“I hate to think Michigan is going to be the next experiment in supply-side economics,” he said. “There's a reason they call it trickle-down, it's a trickle.”

But Snyder said there isn’t anything experimental about getting rid of the “unfair and dumb” MBT, which punished Michigan business owners and made the state an uncompetitive place in which to grow and create jobs.

The new tax system makes Michigan stable and competitive, he said, also ruling out the reinstatement of tax credits for popular programs like the film industry and the redevelopment of urban brownfields.

Subsidies for those kind of activities shouldn’t be buried in the tax code, Snyder said. His first state budget, nearing completion at the Capitol, calls for $25 million in subsidies for film, TV and video game production in 2012, with grants awarded directly by the state’s film commission and economic development agency.

This is a damn good thing, and about time, Granholm's bullshit tax hikes did more to destroy Michigan's economy than anything else. This will help bring back jobs to the State

djones520
05-25-2011, 03:20 PM
Hopefully it works. Michigan definitely needs some growth.

fettpett
05-25-2011, 03:23 PM
Hopefully it works. Michigan definitely needs some growth.

yes we do, so many business rely on other business providing jobs for people, which in turn create more jobs...these dumbasses like the guy in the article don't get that

djones520
05-25-2011, 03:26 PM
yes we do, so many business rely on other business providing jobs for people, which in turn create more jobs...these dumbasses like the guy in the article don't get that

Manistee, where my mom lives, is a prime example. NW Michigan relies heavily on tourism. Whether it's the hunting/fishing, casinoes, or whatever else draws people up there. When you got businesses collapsing left and right down south, no one is going on vacation up north, and it just cripples them.

Get some of those businesses growing again, and you'll see that "trickle down" throughout the whole damn state.

noonwitch
05-25-2011, 04:34 PM
I'm pretty happy with Snyder. I really like his appointee for our department head (Maura Corrigan). She understands the foster care and adoption systems and was an advocate for our kids when she was a MSSC justice.


He is not an in your face conservative, which is probably going to work pretty well in a state that swings from red to blue every 8 years or so, at least at the governor's level.