[Michigantown]

What do you guys think?

Michigan Primary 2014: Proposal 1 a business tax cut that local communities can get behind | MLive.com

[animatedmartian]

Removing the PPT makes sense. Although calling it a tax cut makes it sound more substantial than it really is when they replace it with a new tax. It's more like an updating of a tax rather than a full fledged tax cut.

[zthatzmanz28]

No one will argue that the PPT is out dated and even a bit archaic!
But the question is how will we maintain current funding if approximately $600 Million or so is removed from the system.
My understanding is the money will be transferred from the Service Use Tax that is collected on things like: the privilege of using, storing and consuming certain tangible personal property, plus the services of telephone, telegraph, and other leased wire communication; used auto sales between individuals; and use of transient hotel and motel
rooms.
The rate is 6% of which 1/3 is earmarked for school aid. It brought in about $1,356 million in 2011-12 in state revenues.
What else is this Service Use Tax currently funding? How long will we be using "WIRE COMMUNICATION" and isn't the used auto sales being applied to the Transportation Fund?
This is where I believe our problem is in Michigan. We have so many tax funds that take in money for one thing (like used auto sales) and then redistribute that money somewhere else.
I understand having a "general" fund,but if the state collects fees for parks and DNR, the money ought to stay with the DNR and not go to promoting state ad campaigns.
Si if we vote YES, are we sure the funding will be there? Wouldn't it be better for the legislature to sit down and actually realign the distribution of fees and taxes to be applied to the area from which they are collected?

[tuebor]

Sounds like another tax break for businesses that will ultimately be paid for by the rest of us.

The PPT is not unfair; those who own more should pay more for the police, firefighters, etc. that protects their property and the infrastructure their businesses require. But the PPT does make the state less competitive for attracting investment and makes localities even more vulnerable to drastic income loss if a major business leaves the area.

How about this: do away with the PPT but also raise the minimum wage to $12/hour and require businesses to subsidize childcare for full-time employees. I bet the increased income tax revenues and removal of people from welfare would offset the loss of PPT revenue.

[take57]

I don't pretend to be up on business tax law, but it seems like all the talk is about paying tax on a piece of gear in perpetuity. Does that also mean the business also has been able to take depreciation deductions as well? If business are still using and complaining about out dated primitive equipment what does that say about "trickle down" spuring capital investment? Where were the upgrades when St. Regan and the Bushes were tooting their horn that making it easier to reinvest was the way to go?

Color me skeptical.

[viktor77]

Can anyone provide a layman's guide for all of us who don't understand business law?

[zthatzmanz28]

League of Women Voters Guide to Prop 1