Wow.
“The most important thing I learned (this year) is I’m not ever going to raise taxes again. It’s too hard. It’s too impossible,” Governor Jennifer Granholm told veteran Associated Press political reporter Kathy Barks Hoffman this week in a blockbuster interview. “Especially in light of our economy and what we’ve been through. I just don’t think there’s anybody who’s interested in proceeding down that path again.”
Well then. That must set the stage for an exciting new era of government reform and reorganization because there is no question the state is headed for huge long-term budget trouble. Missing in this year’s long budget fracas was implementation of the kind of reforms outlined by the governor’s own emergency panel of finance and government sages and spending and taxing ideas outlined nearly a year ago by the Center for Michigan.
Momentum for change is growing. The Michigan’s Defining Moment Public Engagement Campaign is in harmony with a number of other groups ranging from Michigan Future to Detroit Renaissance all calling for fundamental changes in culture and how Michigan conducts the public’s business.
Now that the dust is clearing, here are a couple resources on the new Michigan Business Tax, it’s even newer surcharges, and state tax climate in other places…
• Senate Fiscal Agency Analysis of the new MBT Surcharge – To the layman, the surcharges and dizzying array of tax credits seems to have the kind of complexity that led to the ultimate demise of the old Single Business Tax.
• Future State Business Tax Reforms – This report from the Federal Reserve Bank in Chicago includes state tax reform ideas and trends from economists throughout the Midwest. Of particular note is a section by Scott Schrager at the Michigan Department of Treasury highlighting winners and losers under the new tax.
