New Michigan 2% Service Tax (Detroit: homes, rent, income)

[Siberia]

http://www.freep.com/apps/pbcs.dll/a...048/BUSINESS05

For those looking to start a small service business in Michigan, or those who currently run one...something to consider as Michigan attempts to help reduce a $3 Billion dollar deficit through this new tax (amoung other things). Ultimately it might not be a big financial hit to small businesses as they might be able to pass all the tax upon the consumer by increasing costs of service...TBD...

Also, it looks like now is a good time to buy a new car in Michigan as the 6% sales might apply to only the tax differential between the new car and the trade-in (Instead of the entire new car cost). Wonder if this is the case on only domestic, or imports too? Perhaps I'm reading it wrong?

[tuebor]

I'm certainly willing to pay $0.30 tax on a $15 haircut, or $6 on a $300 repair job, although I still think a progressive income tax would be better.

Unfortunately the GOP-controlled state senate has rejected this tax, without offering an alternative--just like the previous GOP-controlled state legislature eliminated the single business tax without coming up with a replacement, which is major cause of the current budget crisis. Evidently the state GOP is following the "starve the beast" ideology of the national GOP leaders. They don't seem to understand that the "beast" in question is a beast of burden--the burden of roads, schools, law enforcement, etc. Starving this beast makes as much sense as a farmer starving his plowhorse.

And the cuts in federal aid to the states that the national GOP pushed through are another contributing cause of Michigan's current budget problems. There may be good reasons for shifting some of these responsibilities from the federal government to the states, but doing so places added strains on states' budgets. Cutting taxes at the federal level may entail raising taxes at the state level. State GOP leaders cannot simply parrot the anti-tax slogans and ape the anti-tax policies of the national GOP leaders if they truly want to address the budget issue.

Or maybe the state GOP would just rather see Granholm fail than see Michigan succeed. I hope someday the GOP (state AND national) will once again be led by people who take governance seriously, like William Milliken and Gerald Ford.

[ChairborneRanger]

I'd "vote" for less government and less taxes. I am afraid that Michigan is just going to further dig a hole for itself by enacting more/higher taxes.

The states that are doing well----that are growing an vibrant----are those with low state taxes.

[TurboState]

Michigan needs *LESS* taxing, not more! A 2% service tax is ridiculous, and probably illegal!

I will simply remove the tax from any tips I give for services to compensate, so in the end, the small business owner will be the one hurt again.

LESS TAX NOT MORE! This state is so poor with managing their money it makes me sick. Look at New Hampshire, they have NO sales tax and NO income tax and are one of the best states to live in! Then again, they don't have a giant minority city draining resources from the entire state, do they?

[jenlit]

I am a small business owner and a manager of a large chain drug store. I deal with the public all day and it really upsets me that Michigan allows people that are on state assistance get away with as much as they do. These people are always trying to buy cigaretts with there bridge cards and other items that are not a necessity for survival. I am tired of supporting all these people. They should have to work two or three jobs like me to survive. THis would help our state out. Or all the residents in detroit that feel it's not important to pay taxes on there homes, get another job.
Hard working residents should not have to continue to carry these people any longer. Just cut them off!!!
Service tax it going to hurt us, we are struggling to make ends meet. Store fronts are closing everyday. This tax will not allow us to raise our prices. People have already started doing their hair at home and boys are wearing their hair longer still, which means less hair cuts. Salons across michigan are struggling everyday. So much for the American dream of owning your own business. Or at least in Michigan.
Send Granholm back to Canada where she belongs. GET OUT!!!!

[Frankawitz]

Tuebor, did you read the numbers Siberia put up from the Detroit News, It sure looks to me that when John Engler was in Office the State was doing fine as far as Taxes coming in and Spending going out. I sure would like to see the Governors numbers on how she Spends and all the hidden Taxes being collected, It's always been Tax High and Spend Big when it comes to the Democrat party, Like when Blanchard was Governor and people where saying back then "Last one out, turn out the lights" well now the Governor has stated the Cry "You'll be BLOWN AWAY in my fifth year!" do you remember that before the Election? I know you bought into her Cry and look what it got you! You probility work for the State or your a Teacher and this shut down will hit you sooner then some of us. The Governor is playing Politics by scaring people but the thing is all she is doing is Pissing a lot of the people off, Wheres her plan for all those Jobs for High Tech workers!
Wheres the companies knocking down the door to set up shop here in Michigan? All I have seen is Companies like Comerica who has done business in the State for 150 years, That a lone says volumes, then VW and the list goes on not counting all the Small Businesses that have packed it in and now are WORKING in other States, Why is this maybe just maybe HIGH TAXES The Democrats always want to Tax the Rich to feed the Poor, Yet most of them are the Rich! and it's funny how they can find ways to have massive write offs their Taxes. Boy and you say the GOP is the problem, wasn't it the Democrats that just legistrated a Pay Increase. Hello!!!
Or maybe your one of them. now that's an idea.
Then what you say makes sense. You look out west and Taxes in States that are looking at growing at a rate of 3.5% why ? Maybe Low Taxes more people working and then they pay Taxes so their States show growth. here people don't have the money to Pay Taxes Why? Cause a lot of them aint WORKING! and if they find jobs they will make that Big Minumin Wage of what $7.16 an hour when they use to make $15.00 or $25.00 an hour. Boy that Wage increased help so many like the young men and women who have to have two and three jobs just to make the ends meet. But these people don't count, cause they are below you and your statis. I bet! I watched Newt Gingrich video on Yahoo (Gingrich Fights for Reform) and like he says about the Goverment, One party is in one room over here and the other party is in another room over there, and the one room is talking about the other while the other rooom is talking about them. What good does this do, Put them in the same room and let US the PEOPLE hear what these people have to say about each other with that person in the same room, It wont Happen and then they are going to let them question each other, Then maybe we'll get something done.
It's a good video people should watch it if they Really Care about OUR State and Country. Sorry for running on but this problem is a Bust or Broke sitution.

[Driller1]

Originally Posted by tuebor

I'm certainly willing to pay $0.30 tax on a $15 haircut, or $6 on a $300 repair job, although I still think a progressive income tax would be better.

Unfortunately the GOP-controlled state senate has rejected this tax, without offering an alternative--just like the previous GOP-controlled state legislature eliminated the single business tax without coming up with a replacement, which is major cause of the current budget crisis. Evidently the state GOP is following the "starve the beast" ideology of the national GOP leaders. They don't seem to understand that the "beast" in question is a beast of burden--the burden of roads, schools, law enforcement, etc. Starving this beast makes as much sense as a farmer starving his plowhorse.

And the cuts in federal aid to the states that the national GOP pushed through are another contributing cause of Michigan's current budget problems. There may be good reasons for shifting some of these responsibilities from the federal government to the states, but doing so places added strains on states' budgets. Cutting taxes at the federal level may entail raising taxes at the state level. State GOP leaders cannot simply parrot the anti-tax slogans and ape the anti-tax policies of the national GOP leaders if they truly want to address the budget issue.

Or maybe the state GOP would just rather see Granholm fail than see Michigan succeed. I hope someday the GOP (state AND national) will once again be led by people who take governance seriously, like William Milliken and Gerald Ford.

Good. And the beautiful thing is you can!
Track you expenses and send in donations!!

[Br1234]

Originally Posted by jenlit

People have already started doing their hair at home and boys are wearing their hair longer still, which means less hair cuts. Salons across michigan are struggling everyday. So much for the American dream of owning your own business. Or at least in Michigan.
Send Granholm back to Canada where she belongs. GET OUT!!!!

Youre right.

Don't laugh but I got fed up with paying so much money for haircuts, higher prop tax and no raises (employers don't have to give them if they know you have no where else to go). One thing I did to save money was buy a flowbee earlier this year. No one has noticed and believe me, if any of my freinds or family had they would let me know. I sold my second-newest (2005) car last year, started doing all my grocery shopping at Aldies and canceled Netflix. I have delayed canceling my basic cable but thats coming soon. I pay $25 for dsl and I might just go to $10 dial-up soon as well. My 5 year old fridge took a crap last month and everyone told me to just buy a new one, you can't fix it. I paid $45 for a new starter and its up and running.
My personal recession is just one example of Michigans problems and I honestly don't know how much longer I will be able to hold out. I've had to give up many things so do I really care if white pine trail gets paved or not, if millenium park gets bigger, if the Tigers get a new stadium, if Fred Meijer gets a shiny new zoo named after him mostly on the backs of the tax payer, 2 BILLION dollars and he wanted us to buy him a stupid zoo, or if the state police gets a new headquarters and whatever other stupid things the gov. wants to tax me for? NO, I would like to keep my stupid cable so I don't have to stare at the GD wall all day.

[MIhome]

Wow,amazing.More taxes,hmm.yeah that's it if you raise taxes,companies will want to move right in,and the people,holy cow it will look like someone opened the flood gates,just to move someplace with higher taxes.why the hell didn't someone in one of these other states think of that?Man,just think offer companies the chance to pay higher taxes,and the people,man they are not strapped enough.what a genius idea.No wonder Michigan is leading the nation,with visionaries like that,I'm thinking Presidential candidate.

[ChrisHeath]

hmmmmmm. I wonder if we made Teachers pay more for their insurance and took away their paid summers if we could have avoided this service tax?!?!?!?! I guess Ill just have to pay my CPA more to keep things in order so Teachers can enjoy their insurance and summers.......................