Thursday, February 09, 2006

Patterson: Kill Single Business Tax in state
And guess who is behind it...

He hasn't launched a statewide petition drive in 16 years, but Oakland County Executive L. Brooks Patterson finds the state's Single Business Tax so onerous, he's ready to start collecting signatures himself to get rid of it.

In his 11th annual State of the County speech Wednesday night, Patterson called for repealing the Single Business Tax, or SBT, and said he'll lead the way to collect pledges totaling $800,000 in the next 10 days to get the issue on the November ballot.

"More than the global economy, the Single Business Tax is killing this state because it is killing jobs in Michigan," he said.

Patterson was making headway Wednesday night. He secured $200,000 in pledges, including $20,000 in pledges from Speaker of the House Craig DeRoche, R-Novi.

Businesses large and small dislike the tax, which raises $1.8 billion annually for the state, because they must pay portions of it even when they don't make money. The tax -- currently 1.9% -- is imposed on business income, payroll and interest paid.

So we are talking almost 2 billion in revenue- gone. Perhaps we can close some prisons or something. Just turn 'em loose. Lay off the cops. That will work.
The Legislature and Gov. Jennifer Granholm's administration have haggled for a year on a way to lower the tax. Granholm proposed lowering taxes on most businesses in Michigan, but the Republican-controlled Legislature said her proposal created winners and losers in the business community.

Granholm has said she is willing to look at any proposal that will help make the state more competitive, but she won't sign on to any proposal that doesn't include a way to make up lost revenues.

"She will not support any plan that shifts the tax burden from wealthy corporations to Michigan's hard-working men and women," Granholm's spokeswoman Liz Boyd said Wednesday.

Oakland County Commissioner David Coulter, D-Ferndale, said Patterson has used his annual speech to launch a lot of great ideas. "But this isn't one of them," he said. "We provide a lot of services in Oakland County, and what will we have to cut to pay for this tax break?"

Already being framed properly, good job kids.

The devil DeVos is in the details. From MichiganLiberal, who broke the story yesterday-

As I was browsing through the new candidate committees on the Secretary of State's website, I came across the following new committee, formed 2/1/06. Repeal SBT. The address listed is the 8th floor of Lansing's Michigan National Tower - which also happens to be the Lansing office of Dykema Gossett, one of the state's largest Republican law firms. The manager of this office is a guy name Dick McLellan, who among other things is on the Mackinac Center Board of Directors and was Former John Engler's transition director.

And from the comments DemWave came up with this-
Why wouldn't the Oakland County Executive use an Oakland County law firm for this?

Because it isn't really his project. It belongs to Dick DeVos. DeVos has already said he'd repeal the Single Business Tax AND significantly reduce personal property taxes paid by businesses, which translates to signficiant cuts for for public schools, police, and fire.

McLellan is Dick DeVos's lawyer.

DeVos used the same address and phone number when he filed his paperwork announcing his intent to buy the Governor's office.

I don't think the voters will go for something that repeals taxes on their bosses, especially if they realize that their taxes will be raised in return. But will they finally catch on that they are the ones being squeezed by all these tax cuts for the rich?

This ballot issue points to the continuing failure of the Republican legislature. They could have had tax cuts if they would have closed loopholes and found ways to replace the revenue, but the greed of their "all or nothing" mentality has produced measures like this.

Dick DeVos got his tax cuts at the national level, now he wants his tax cuts at the state level, too.

It's quite simple, really. Republicans want to raise your taxes. Not their taxes. Your taxes.

Lather, rinse, repeat.