Once again Peter Luke points out the obvious- a fact I totally missed before. I might have to change my tag line up above.
This is the GR Press title for Luke's column- and he's right.
Republicans pretend to be eager about scrapping the state's main business tax, which they say is crippling the state's economy.
But they aren't really.
Both pending legislation and the petition drive engineered by Oakland County Executive L. Brooks Patterson wouldn't eliminate the tax until the Dec. 31, 2007 -- 21 long months from now.
Apparently, what Republicans call an economic emergency in Michigan can be addressed at the Legislature's leisure. Why call 911 for an ambulance when there's a bicycle in the garage?
If Gov. Jennifer Granholm and Democratic lawmakers were political poker players, they'd call the GOP's bluff and agree to scrap the Single Business Tax. But only if the tax goes out of business much sooner, say on Oct. 1.
Well, I wouldn't go that far. Too dangerous to vulnerable citizens. And given the even-more-hostile-than-it-already-is climate of an election year, bad decisions might be made.
BUT, he is right on on this next point.
What everyone agrees on is how much the tax brings in, about $1.9 billion annually, and what it pays for: one-fourth of the state's discretionary budget for state aid to universities, prison operations and health care for the poor, primarily nursing home care for the disabled and elderly.
An Oct. 1 expiration of the SBT would force lawmakers to take their work seriously this summer and craft an alternative that would improve the state's business climate and protect vital services.
But it's ridiculous to call the SBT a job-killer and then take much of the election year off so well-heeled incumbents can campaign for another term. If opponents of the tax say a repeal would create jobs, why should that job creation wait until 2008?
Maybe they don't really believe the essential structure of the SBT is all that bad for the state's job climate. Or worse, maybe they don't want to admit to voters that they lack the creativity and political skill to overhaul it.
I think it's the latter.
They had, what, 12 years under Engler to do something about this horrible, awful, terrible state-killing tax and they totally ignored it? But now it's this big rush to do away with it?
Doesn't make sense.
And I see they are taking cues from the leadership in Washington on fiscal policy. That ought to scare the hell out of everyone.
They don't appear to be up to the task. Last week, while lawmakers were voicing support to get rid of a tax that by itself pays for all the state aid to universities and community colleges, they were adding $29 million to the higher education budget recommended by Granholm.
So they want to cut taxes AND increase spending. Now there's a demonstration of fiscal competence.
Hey man, nice shot.
Back to the "urgency" issue -here's Craig DeRoche a few short days ago-
"The time to act is now," House Speaker Craig DeRoche, R-Novi, said before Thursday's vote. "We can't afford to wait another minute."
And here's Dick from the same article-
"Michigan needs to change and we can start by getting rid of this tax and putting our state back to work," DeVos said.
Right now! Gotta do it right now! Snap our fingers and the jobs will come pouring in...uh...21 months from now.
Right. More "magical thinking" from the Republicans.
Some businesses are starting to become wary of the issue, realizing that they might be stuck with the bill.
But manufacturers who bear the greatest SBT burden are reluctant to support the repeal if lawmakers are unwilling to spread that burden more equally across other business sectors, including financial and professional business services.
Granholm proposed that approach last year as a means of lowering taxes for the Big Three automakers and other manufacturers. Republicans rejected that approach as a tax increase.
"Somebody's going to have to pay more, no matter what the (SBT) replacement is," said Chuck Hadden, a lobbyist for the Michigan Manufacturers Association. He said businesses backing the repeal "should be careful what you wish for."
Ken Sikkema gives us a clue, although I don't think he realized it. Or, maybe he did.
Wary of Democratic charges that the GOP intends to shift the tax burden from businesses to individual taxpayers, both the House and Senate will be on record opposing increases in the income and sales tax.
"That's why we are taking any tax increases on individuals off the table during this discussion," Senate Majority Leader Ken Sikkema, R-Wyoming, said Thursday.
Yes. During this discussion. The bill will come after, when it's too late.
That's the new Republican "fiscal responsibility" talking. Spend now, pay later. Lie about what it might cost. State emphatically that they are "right", when they have no real proof.
Stick the taxpayers when things go wrong.
True fiscal conservatives would do well to run far away from this proposal. Get the work done before you make the jump. This sense of urgency is just a smoke-screen, election-year distraction from the fact that they have no solid plan for fiscal sanity.