Comments on: Michigan's bizarre circular thinking on biz taxes http://www.thecenterformichigan.net/michigans-bizarre-circular-thinking-on-biz-taxes/ Tue, 06 Sep 2011 18:31:23 +0000 hourly 1 By: Francis St.Onge http://www.thecenterformichigan.net/michigans-bizarre-circular-thinking-on-biz-taxes/comment-page-1/#comment-1042 Francis St.Onge Fri, 24 Oct 2008 19:22:25 +0000 http://www.thecenterformichigan.net/blog/?p=1059#comment-1042 To get out of the circular thinking we need to broaden our dialog to look at all taxes - personal and business. We need to seriously look at what exemptions and subtractions are allowed and ask ourselves a rather simple question: If every citizen/business is getting benefits from the services provided by our state revenues, then shouldn't every citizen be contributing something to help support those services? I would hope that everyone would be able to answer Yes to this question. If the answer is Yes then we need to go back to the details of the tax rules for all taxes and see what is not being taxed. That will open everyone's eyes I am sure. Subtractions from personal taxes are well over $21 Billion (2005 numbers for AGI over $50,000). These subtractions enable many taxpayers to not pay any personal income tax because all their income is exempt from income tax. Many of these taxpayers are not over age 62 and retired, they are very active individuals who are enjoying the benefits of what the programs are that are paid for with tax dollars. Appears to me, if I am using the services or getting the benefits of the services then I should be paying for them by paying my share of the taxes. If we could get to that level of agreement then I think we would be able to solve the problem. I don't think we accomplish much when we elect to tax the business community because they are easy targets for a tax when the business just passes on these taxes to the same individual who is not directly paying his/her share of taxes on their income. To get out of the circular thinking we need to broaden our dialog to look at all taxes – personal and business. We need to seriously look at what exemptions and subtractions are allowed and ask ourselves a rather simple question:

If every citizen/business is getting benefits from the services provided by our state revenues, then shouldn’t every citizen be contributing something to help support those services?

I would hope that everyone would be able to answer Yes to this question. If the answer is Yes then we need to go back to the details of the tax rules for all taxes and see what is not being taxed. That will open everyone’s eyes I am sure.

Subtractions from personal taxes are well over $21 Billion (2005 numbers for AGI over $50,000). These subtractions enable many taxpayers to not pay any personal income tax because all their income is exempt from income tax. Many of these taxpayers are not over age 62 and retired, they are very active individuals who are enjoying the benefits of what the programs are that are paid for with tax dollars. Appears to me, if I am using the services or getting the benefits of the services then I should be paying for them by paying my share of the taxes.

If we could get to that level of agreement then I think we would be able to solve the problem.

I don’t think we accomplish much when we elect to tax the business community because they are easy targets for a tax when the business just passes on these taxes to the same individual who is not directly paying his/her share of taxes on their income.

]]> By: Neil Karl http://www.thecenterformichigan.net/michigans-bizarre-circular-thinking-on-biz-taxes/comment-page-1/#comment-1041 Neil Karl Fri, 24 Oct 2008 18:10:11 +0000 http://www.thecenterformichigan.net/blog/?p=1059#comment-1041 The question is not what to do about the MBT. The question is: what do the Michigan business taxes need to be changed to or eliminated to compete with the new Ohio busines tax structure, NAFTA (Mexico and Canada), and the global economy? The question is not what to do about the MBT. The question is: what do the Michigan business taxes need to be changed to or eliminated to compete with the new Ohio busines tax structure, NAFTA (Mexico and Canada), and the global economy?

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