Tagged: taxes

Michigan's Treasury Department says the state will lose about $242 million in tax revenue from Amazon and other online retailers.

States have trouble collecting sales taxes from sellers that don't have a physical presence within their borders. Amazon owns Grand-Haven-based audio book publisher Brilliance Audio, but Treasury spokesman Terry Stanton says Michigan considers it a separate entity.

Last week, I talked about the Michigan House of Representatives voting to slash the state income tax over the next six years. I thought this didn’t make a lot of sense, given that the state is having a hard time paying for essential programs now.

Later that day, I talked more about this with the man I think has the best overall knowledge of our state’s economy: Michigan State University professor Charles Ballard, author of the best little book there is on the subject: "Michigan’s Economic Future."

Hundreds of people showed up for a public hearing in Saugatuck Wednesday night. Most spoke against the proposed plan to merge the cities of Saugatuck and Douglas.

Travis Randolph is with the group that’s behind the idea. He hopes a state commission will decide the proposal is reasonable enough to put before voters.

"The ultimate poll is an election and that’s all we’re trying to get to. So that everybody can have a say. And in the process of getting to the election, you have to go through dealing with those people who have emotional connection to the present, not to the future,” Randolph said.

The Legislature has sent election-year tax reductions to Governor Rick Snyder for his approval.

The measures would accelerate a reduction in the state income tax rate, and increase the personal exemption. That’s after a tax rate rollback was delayed last year.
    
The House also approved a measure to continue rolling back income tax rates through 2018.
    
Democratic state Representative Vicki Barnett was one of just a handful of “no”’ votes.

She says the six-year rollback is poorly planned, and could force more cuts down the road to schools and public safety.

“The numbers don’t work. I’m a financial planner in my private life. I’ve looked at the numbers. The numbers don’t work. I would love to be able to return excess money to the taxpayer, but after we fund critical services to the level they should be funded at," said Barnett.

The Legislature begins its summer break today. The state Senate could take up the six-year rollback later this year.

Mackinac Policy Conference kicks off today

The annual Mackinac Policy Conference gets underway today on Mackinac Island. The conference is sponsored by the Detroit Regional Chamber and has been taking place since 1981. It's a place where policy makers, politicians, and business and thought leaders get together to discuss ideas and policies that could shape Michigan's future.

Conference organizers hope to "spur a comprehensive dialogue on innovation, collaboration and the 21st century global market" at this year's conference.

If you feel compelled to tweet about the event this week, the hashtag for the conference is #mpc12.

Michigan Governor Snyder will deliver welcoming comments today at 3:30 p.m.

Michigan Radio's Zoe Clark and MPRN's Rick Pluta will bring us updates from the conference. You can also watch online coverage of the event sponsored by Detroit Public Television.

Update on wildfires in the Upper Peninsula

The AP reports that the 3,400-acre Pine Creek North wildfire in Schoolcraft County is mostly contained:

Officials say some crews are leaving the area as mop-up operations continue. Firefighters on Tuesday planned to patrol the perimeter of the fire looking for hot spots.

The wildfire was ignited by lightning and first reported on May 21.

However, the Duck Lake Fire continues to burn. More from CNN wire services:

The Duck Lake Fire has burned more than 22,000 acres and is still going despite recent rains, the Michigan Department of Natural Resources reported on its website.The state agency estimated Monday the blaze is about 51% contained, thanks to progress made by firefighters in maintaining a firm perimeter.

Moving up income tax cut called a "gimmick"

The Michigan House of Representatives will begin taking up plans today to move a planned income tax cut up by a few months.

The tax rate will drop from 4.35 percent to 4.25 percent next January. The Associated Press reports Michigan House Republicans want to start the tax cut in October 2012.

House Republican Speaker Jase Bolger wants to return $90 million from a budget surplus to taxpayers. The tax rate would drop from 4.35 percent to 4.25 percent.

The Michigan League for Human Services says the move is an election-year gimmick. It says the money would be better spent offering preschool or dental care to low-income children.

Democrats say tax changes passed last year by GOP lawmakers will require that individuals pay $1.4 billion more in taxes next year. They say the $90 million cut is insufficient.

Taxes, as we all know too well, are a powerful political issue. And the issue has come up yet again at the state Capitol. A cut in the state income tax has become part of the negotiations as Gov. Rick Snyder and the Legislature's top Republican leaders wrap up their budget negotiations. Rick Pluta, Lansing Bureau Chief for the Michigan Public Radio Network, and I sit down to talk politics every Friday and today, in It's Just Politics, it is all the politics of taxes.

Rick Pluta: The governor and the Legislature have set this deadline of June 1 for wrapping up the next state budget.

Zoe Clark: And that's important, because - even though the state's fiscal year begins October 1 - schools, community colleges, cities, townships, and counties all have budget years that begin July 1. They all have budgets that are tied into state spending.

RP: Right. Now, in the final days of discussions, Republicans have put an income tax cut on the table. State House Republicans will roll out the legislation next week.

ZC: So, that begs the question: why are they doing it now?

RP: Well, for a year and a half, Democrats in Lansing have hammered Republicans because all the tax and budget reforms have focused on reducing costs for businesses: eliminating the Michigan Business Tax on 95,000 businesses and the proposal to eliminate the tax on industrial equipment.

ZC: At the same time, a dozen tax credits and exemptions claimed by homeowners, parents, seniors on pensions, and  poor families earning incomes were ended.

RP: And Democrats have been pounding Republicans with that incessantly and with an eye toward the November elections - when, we should note, all 110 seats in the state House of Representatives are up for election.

ZC: So now, courtesy of Republicans, a proposal for income tax relief.

RP: The main bills in the tax rollback package will be sponsored by state Representatives Holly Hughes and Ed McBroom, Republicans representing districts that are considered marginally - 51, 52 percent - Democratic.

ZC: And Democrats most certainly want those seats back.

RP: Exactly, and this shows Republicans intend to put a fight in these seats by giving their incumbents these bills. One accelerates a reduction in the income tax rate; the other increases the personal exemption. But the bottom line is Republicans want the message to be: Republicans equal tax cuts. Democrats, however, have already revealed their counterattack.

ZC: And the counterattack is really what their message has been all along. Since last year, GOP hegemony in Lansing has meant tax cuts to businesses while seniors, homeowners, and working poor families all lost tax breaks that they've counted on, as well as reductions for schools, universities, and local governments.

RP:  Right, so Democrats say this so-called "tax relief:" 50 cents a week, nine dollars a person per year  is pretty meager compared to the costs that everyone has had to pick up in the name of improving the business climate.