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Let's Eliminate the MBT

by: wizardkitten

Thu May 21, 2009 at 10:10:37 AM EDT


Yet another op-ed this morning from yet another Chamber of Commerce official who calls for the elimination of the Michigan Business Tax. Essentially, the business community wants to ignore the major factors of job loss to talk "more tax cuts", and once more try to shift the burden of the costs of modern society onto citizens...

Many causes can be attributed to Michigan's recent economic malaise: the troubles in the domestic automotive sector, a downturn in the national economy brought on by the financial crisis in banking and the "flattening" of the global marketplace to name a few of the more popular ones. However, any honest debate about Michigan's troubles must include the negative impact of the Michigan Business Tax.

Never mind that the business community had a big hand in shaping the MBT back when they made these very same arguments about the SBT. We will ignore the fact that they helped create the tax situation that they now want to complain about. Just like the Mac Center - they will use our economic malaise to push for their special interests alone - and disregard the cost of what this proposal entails.

So, tell ya what. Let's agree to eliminate the MBT. Do away with it altogether. No taxes for business whatsoever. You win.

Just one thing before we do though, and this should be demanded from all those that want to continue to make the suggestion that we cut revenue, from the Chamber of Commerce to the Republican Party on down the line. I'm going to shout this because the point seems to be lost on everyone every single time this argument comes up. Lean in closer. You listening now?

PUT YOUR CUTS ON THE TABLE.

You want to eliminate the revenue from the MBT? Show us how to pay for it. Better yet, show us WHO pays for it. When you do, we can have an honest discussion about the issue of taxes, decreased revenue, and state services. You can talk about the Chamber's list of "reforms" all you want, but there are reasons why the legislature hasn't taken them up, and my guess is that they would be unacceptable to the public, who elected these people to speak for us. We didn't elect the CoC to office. We tried that experiment; it was called "The Bush Years", and look where that got us.  

Until business interests put an acceptable plan on the table, this is just more of the same nonsense we went through when you eliminated the SBT, and we don't need to hear it. It cost us jobs and investment for nearly a year last time, and we simply cannot afford to do that all over again.

The challenge has been issued. Put those cuts on the table. Show Michigan what it costs to give you another tax break. Or knock it off, before you drive away more investment with your anti-Michigan business rhetoric.

Thanks for your attention. Enjoy your time at Mackinac next week, and try to come up with some long term solutions, other than simply finding the angle that puts that extra buck in your pocket today while the rest of the state goes broke. The infrastructure, the educated employees, the public safety you save, just may be your own.

wizardkitten :: Let's Eliminate the MBT
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Amen! (4.00 / 2)
The Repugs have no intention of eliminating the MBT.  They just want to use it as a political wedge.

If you can find a way to replace the lost revenue (progressive income tax, perhaps?), then I'd say get rid of it.  Otherwise we're a little strapped for cash and we're going to need the money.

A voice in my head tells me not to be so mean to the conservatives.  I work very hard to ignore that voice.


Great Rebuttal (4.00 / 2)
Kudos!  Thanks for bringing this to our attention.

Notice how Jackson is aping the Mackinac Center's talking points with the "picking winners and losers" bit?

http://www.mackinac.org/articl...


[ Parent ]
Budget Deficit (4.00 / 2)
Although this is about the MBT, it has more to do with the budget deficit.

A month(?) ago the Governor passed about $300 million in cuts to help offset the $1.2 billion deficit.

My understanding was that was actually the year to date deficit.  As in, the deficit has the chance to grow through October.

If so, with Chrysler layoffs, GM layoffs and realistically auto supplier layoffs, won't the budget deficit balloon for this year?  


Yes (4.00 / 1)
The best anyone can guess at this point is $1.72 billion dollars in the hole for FY 2009-10. They check the revenues by the month, and if it shows that they are way off the mark and we are taking in less than predicted, they will convene another revenue estimating conference to come up with a new target.

Pretty sure that is the way it goes.

Whatever happens, it's going to be brutal. People are already screaming about the cuts we have made so far - talk of eliminating the MBT is pretty ridiculous, unless they want to come up with a way to replace that lost revenue (shifting the tax burden to citizens), or putting more drastic cuts on the table.

Which would go over like a lead balloon, and that is why I challenge them to do it.  


[ Parent ]
FY2008-09 (4.00 / 2)
I am talking about this year's budget.  Not next years.

Earlier this year the deficit was $600 million and the Governor said to wait to see what happens when the 1st quarter of 09 ends to know how much Business's generated.  After that the deficit grew to $1.2 billion.

I am expecting a similar growth in July after the 2nd quarter of the MBT is collected.  So I would expect this years budget deficit to grow to almost $2 billion.

Forget cutting another $300 million, I think the state will have to cut a billion.  

I really can't see the FY2009-10 budget being less than $2 billion in the red.


[ Parent ]
Me either (4.00 / 1)
That's why I tend to go off about things like this.

[ Parent ]


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