Schuette Pushes Irresponsible Tax Plan Gimmick

Many Michigan Republicans are stepping up efforts to repeal Michigan’s personal income tax. While the idea may sound tempting consider:

  1. The tax won’t be fully repealed until 2057.
  2. Even though taxpayers won’t see the income tax eliminated for 40 years, the repeal would start decimating the state budget next year, when there would be a $1.1 billion shortfall.
  3. Suddenly having $1.1 billion less in the budget would harm funding for education, infrastructure repair, community policing, health care and other priorities — and that’s just the first year of the rollback
  4. In subsequent years, the amount lost in the state budget will gradually increase.

So, to sum up: You won’t see the income tax gone for 40 years, but as early as next year, your schools and your community will start to feel the impact in the form of decreased funding.

Sound like a good deal? It sure does to Bill Schuette, whose job as state attorney general is ostensibly to lookout for the welfare of Michigan residents. Thanks, Bill!

Jack Lessenberry of Michigan Public Radio explains it about as well as anyone can:

In Lansing, the Michigan House Tax Policy Committee was to begin discussions today on a proposal that most Republicans are ecstatic about.

That would be a bill to immediately roll back our state income tax from 4.25 percent to 3.9 percent, and then keep cutting it by a tenth of a percent every year until it would be gone entirely. Well, completely getting rid of the income tax is a fantasy for four-year-olds.

Nobody takes that seriously except as a way to fool the voters.

But they may well cut the income tax to 3.9 percent. Yesterday, Michigan Attorney General Bill Schuette joined the chorus of those supporting that.

“We must be a state that allows our hardworking men and women to keep more of what they earn, and for the government to take less of what they make,” he posted on Facebook. Those are nice eloquent-sounding words.

Who could disagree with that? The only trouble is that it’s all utter nonsense.

Hear the entire piece here.

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