Business tax cut will wipe out rising Michigan revenue, House agency says

[Newsjock]

Source: Associated Press

Michigan's improving economy likely will bring in hundreds of millions of dollars in additional revenue this year and next, but a new business tax cut likely will eat up more than the extra the state can expect next year, the House Fiscal Agency said today.

"Overall revenues are up, but the tax proposal that was just enacted will wipe out a portion of those increases," HFA deputy director Mary Ann Cleary told The Associated Press.

... Although the agency forecasts revenues will be $483.7 million higher than expected in next year's budget, it says the new business tax passed Thursday by lawmakers will more than wipe out all of the extra revenue and probably require the state to use $77 million from this year's surplus to cover the gap.

... Gov. Rick Snyder is expected to soon sign legislation that replaces the Michigan Business Tax with a 6 percent income tax to be paid by about a third of Michigan businesses, most of them large corporations with shareholders. The change will shrink business tax revenue by around $1 billion in the budget year that starts Oct. 1 and $1.7 billion the year after that. Some of the lost revenue will be made up by higher taxes on individual taxpayers, especially younger retirees and the working poor.

Read more: http://detnews.com/article/20110513/POLITICS02/105130443/Business-tax-cut-will-wipe-out-rising-Michigan-revenue--House-agency-says

[pacalo]

1. Are the Republicans getting some kind of kickback for these huge tax cuts?

Eight years of Republican rule has shown that the cuts are clearly not helping the economy, so is there a system in place to keep track of money received by Republicans -- individually as well as a whole -- to see what the heck their fanaticism about tax cuts for thriving corporations is getting back in return? Are there any investigative journalists out there who would use their right-to-know access to probe into this?

[AndyTiedye]

2. They Get to Keep All That Secret Now, Thanks to the Supreme Court's "Citizens United" Decision

Unlimited secret corporate money. Foreign money too.
They don't have to report any of it to anyone, ever.

[Bozita]

Yup ...

[Bozita]

3. oops

[whathappened]

4. and disabled

they may have got there tax cuts , but the people who were getting help with there part d took a hit , they just sent us a letter cutting us from medicaid part d program , this just kicked our asses , between the wife and i we have 16 meds we take , which starting june 1 will not be paided for cause the rich fookers needed a dam tax break and buinesses are jumping with fooken joy cause they can buy another house or car , mean while here back on planet earth , the wife and i are fooked big time ,along with others out there , these fookers won't take this cut and hire a fooken person

[whathappened]

5. and disabled

they may have got there tax cuts , but the people who were getting help with there part d took a hit , they just sent us a letter cutting us from medicaid part d program , this just kicked our asses , between the wife and i we have 16 meds we take , which starting june 1 will not be paided for cause the rich fookers needed a dam tax break and buinesses are jumping with fooken joy cause they can buy another house or car , mean while here back on planet earth , the wife and i are fooked big time ,along with others out there , these fookers won't take this cut and hire a fooken person

[freshwest]

9. Sorry to hear that. Bernie Sanders and others know and have spoken on this.

[MichiganVote]

6. This a lose-lose-lose for anyone w/o a business or, of course, the wealthy.

[No Elephants]

7. Maybe Michigan's voter majority will wise up?

[sarcasmo]

8. Tax the pensioners and give the tax to the business owners, typical republican speak.

[freshwest]

10. Are we dead enough yet?

[Mr. Jefferson]

11. Revenues are $483.7 million higher than expected...