[magellan]

This flat sales tax of 9.5% on retail sales (not services) would replace all of Michigan's income tax on individuals and all state business taxes.

In a nutshell, the Fair Tax would wipe out almost all state taxes for businesses and residents. They would be replaced with a 9.5 percent sales tax on all goods and services purchased by consumers, but not businesses.

Consumers might complain that 9.5 percent is a lot higher than the current 6 percent sales tax and covers all services, not just the handful now taxed.

But proponents say it's easier to swallow when people realize it replaces the state income tax of 4.35 percent, as well as the Michigan Business Tax, personal property (equipment) taxes, corporate taxes and other businesses taxes.

"It's very simple, very broad-based. It's hard to evade and doesn't pick winners and losers," said John Crawford, head of the Wyoming Kentwood Chamber of Commerce. His group is the first chamber in Michigan to support the idea.

It would cover people who do not pay income taxes now, Sheen points out. "All the people who come here to fish, ski and hunt, enjoy our natural resources -- just like Florida and Texas, Nevada and South Carolina that primarily get their taxes from sales tax."

It also would pull in revenue from people who operate on the edges of the economy, he noted, workers paid in cash, those who make under-the-table deals and some illegal aliens.

"Even drug dealers," Brann added.


MLive.com: Everything Michigan

Again, businesses would pay 0 state taxes under their proposal. That might make Michigan more attractive to business expansion.


They hope to start a petition drive in January for next year's ballot. What do you guys think?

*Michigan QuickFacts from the US Census Bureau

[bls5555]

Originally Posted by magellan

This flat sales tax of 9.5% on retail sales (not services) would replace all of Michigan's income tax on individuals and all state business taxes.

In a nutshell, the Fair Tax would wipe out almost all state taxes for businesses and residents. They would be replaced with a 9.5 percent sales tax on all goods and services purchased by consumers, but not businesses.

Consumers might complain that 9.5 percent is a lot higher than the current 6 percent sales tax and covers all services, not just the handful now taxed.

But proponents say it's easier to swallow when people realize it replaces the state income tax of 4.35 percent, as well as the Michigan Business Tax, personal property (equipment) taxes, corporate taxes and other businesses taxes.

"It's very simple, very broad-based. It's hard to evade and doesn't pick winners and losers," said John Crawford, head of the Wyoming Kentwood Chamber of Commerce. His group is the first chamber in Michigan to support the idea.

It would cover people who do not pay income taxes now, Sheen points out. "All the people who come here to fish, ski and hunt, enjoy our natural resources -- just like Florida and Texas, Nevada and South Carolina that primarily get their taxes from sales tax."

It also would pull in revenue from people who operate on the edges of the economy, he noted, workers paid in cash, those who make under-the-table deals and some illegal aliens.

"Even drug dealers," Brann added.


MLive.com: Everything Michigan

Again, businesses would pay 0 state taxes under their proposal. That might make Michigan more attractive to business expansion.


They hope to start a petition drive in January for next year's ballot. What do you guys think?

*Michigan QuickFacts from the US Census Bureau

ALL states should be doing this, and this is what should be done on a federal level also. This would be a GREAT move. I don't live in Michigan but have considered moving there, this would make it a much easier decision. I have been considering Tennessee for the no state income tax. This gives you the option of CHOOSING how much tax you want to pay.

Not sure if people know about fairtax.org, but it calls for a national sales tax and gets rid of all the other taxes.

[bryan61]

From a percentage standpoint its regressive and will hit the poor hard.

[jst333]

I would absolutely support this, and a nationwide flat tax.

[mich2fla]

If it will replace the income tax, sure it's will benefit the workers here. The retirees and the poor will feel squeezed.

[irvm]

Originally Posted by mich2fla

If it will replace the income tax, sure it's will benefit the workers here. The retirees and the poor will feel squeezed.

Exactly. And there's always that big IF.
You can't trust politicians to keep their word, so look for reinstatement of income tax within a few years (but of course, no repeal of the higher sales tax).

[bls5555]

Originally Posted by bryan61

From a percentage standpoint its regressive and will hit the poor hard.

This is a lame. Tennesse, Maine, Texas have ALL been doing this for some time.

Enough with the regressive nonsense.

This is the same thing that is put on the National Fair Tax yet they offer pre-bates up to the poverty level.

What is poor by the way? I know SEVERAL people who are on the WIC program (free food for kids), but they have Hi-Def TV's and Nintendo Wii's.

Yes I know there are people who aren't like this, BUT this would be great for the state of Michigan, yet you are saying don't implement it because it might make the poor pay some sort of taxes? Not to mention that you are now getting some sort of tax from the Millions of Illegals who don't pay a dime (if this were to go Nationwide with the fairtax)



No way would politicians reinstate the income tax if this passed, it would be political suicide and open up the door to ANYONE IN THE OPPOSITE PARTY who won't reinstate it. Won't happen. Terrible excuse to not implement it.

Now an increase in the sales tax? That is a possibility.


As for the regressive thing, since it is just a sales tax, wouldn't all sales tax be considered regressive? Since it is always 1 tax and makes no adjustment for income level?

EX: Person A makes 50,000 a year and Person B makes 25,000 a year. The sales tax where I live is 6.25%. Obviously that 6.25% is a larger portion B's income than A's. How is this not the same thing? The fact that I pay an income tax and a poor person doesnt in my state suddenly makes the normal sales tax any different than what is proposed above?

[Bydand]

Originally Posted by bls5555

This is a lame. Tennesse, Maine, Texas have ALL been doing this for some time.

Enough with the regressive nonsense.

I can tell you for sure that Maine has 5% sales tax AND 8.5% income tax. They do NOT have a flax sales tax and no income tax. Cannot say for sure about the other two you mentioned. There is talk right now in Maine about raising the sales tax back up to 6%, it has been as high as 7% a few years back.

[bryan61]

Just the facts, for the same purchase folk on fixed incomes will pay a higher % of their incomes towards sales taxes than folks with higher incomes. Poor are elderly on fixed incomes, single mothers raising families and working, unemployed machine operators trying to raise families. Shifting the tax burden from the rich and wealthy to the struggling poor is wrong.

If I want to be tennesee texas or maine I'll move

[bls5555]

Originally Posted by bryan61

Just the facts, for the same purchase folk on fixed incomes will pay a higher % of their incomes towards sales taxes than folks with higher incomes. Poor are elderly on fixed incomes, single mothers raising families and working, unemployed machine operators trying to raise families. Shifting the tax burden from the rich and wealthy to the struggling poor is wrong.

If I want to be tennesee texas or maine I'll move

Your right, why try to be like Tennessee or Texas. They are only 2 states who are seeing housing increases and phenomenal growth.

How does this not make ANY sales tax a regressive tax then? People on lower incomes are ALWAYS going to pay a higher percentage of their income if there isn't some sort of adjustment in the tax rate for income levels.

Also, as in the fair tax, this can easily be solved with the pre-bate up to the poverty level for everyone (yes everyone, not just the poor). This way you are NOT getting taxed on any necessities. If the poor choose to buy non-necessities, so be it, but then they get taxed.

This is good for EVERYONE. Business, individuals and the state.

As for the nationwide fairtax, go here Americans For Fair Taxation: FairTax.org , as this seems very similar in most cases.


Edit: On the 2nd page of one of the links in the first post.
And low-income people would get a rebate so they do not pay an unfair portion of their income, he said.

There is NO reason why the state should not go to this. I am still shocked at how many people think taxing is the answer to problems. Getting RID of taxes is the answer to problems.