On taxes, Dillon told The Chronicle after the meeting he supports shifting sales taxes to services as the only realistic revenue-raising option. If the Republican-controlled Senate will not do it, he said the Legislature should put the tax proposal on the August ballot.
"We have abandoned our responsibility in Lansing," Dillon said told party leaders of the continuing cuts in the state budget. "The role of government is to provide a great quality of life, educate our kids and keep us safe in our homes. We need to begin investing in our state and in our people."
Mike Bishop, to Gongwer:
“Dillon and the governor proposed a gigantic tax increase at this meeting,” he said, referring to Ms. Granholm’s sales tax on services proposal. “And, as I told them, I’m not interested. We’re not interested. I didn’t need to get back to him to tell him that.”
This "gigantic tax increase" would eliminate the MBT surcharge, lower business taxes, and lower the overall rate of the sales tax. The governor's proposal is also revenue neutral after three years. There is no "gigantic" tax increase, but when did the facts ever stop Mike Bishop from his standard hyperbole before?
Senate Republicans will not meet halfway on the budget, so Democrats, repeat after me: "Republicans insist on cutting our schools. Republicans insist on cutting our schools. Republicans insist on cutting our schools." You could even through in the cops and firefighters for good measure.
Dillon now says he wants the budget done by May - but given the "no compromise, ever" attitude of Mike Bishop, the only way that is happening is if the Democrats cave to Senate Republican demands. Maybe we should draw up the bills for a continuation right now...