Michigan Income Tax Increase: Will It Really Be Rolled Back?

According to The Detroit News, the new bill just passed to avert a government shutdown

would ratchet up the levy from 3.9 percent to 4.35 percent to raise $760 million. The rate would begin a gradual rollback in 2011 and return to 3.9 percent by 2015.

My question: Will the income tax ever be rolled back to 3.9 percent? Ever?

I predict that the Michigan income tax will never see 3.9 percent again. Ever!

This is the way government usually works: Squeak something in via “compromise,” place some kind of “rollback” or “sunset” provision in order to get it passed, and later pass new bills that remove the “rollback” or “sunset” provision.


4 Responses to Michigan Income Tax Increase: Will It Really Be Rolled Back?

  1. aposteriori2 says:

    MONEY, dum dumdumdudm do do do dah do, get away
    Get a good job with more pay and your O.K.
    Money it’s a gas
    Grab that cash with both hands and make a stash
    New car, caviar, four star daydream,
    Think I’ll buy me a football team
    Money get back
    I’m all right Jack keep your hands off my stack.
    Money it’s a hit
    Don’t give me that do goody good bullshit
    I’m in the hi-fidelity first class traveling set
    And I think I need a Lear jet
    Money it’s a crime
    Share it fairly but don’t take a slice of my pie
    Money so they say
    Is the root of all evil today
    But if you ask for a rise it’s no surprise that they’re
    giving none away

  2. hypothesis says:

    I propose that whenever a new budget for the next fiscal year has not been approved and passed within 60 days of the beginning of the next fiscal year, all legislators in the Michigan House and Senate, along with the Governor and Lieutenant Governor, will not receive any pay for each day within that 60 days for which there is not an approved budget.

    And any pay lost is gone forever.

    And if it goes beyond 30 days before the next fiscal year, whatever the last pay increases were for the legislature and the executive, they will be rolled back to previous levels not to be regained for at least 1 year.

    I’m beginning to think that the Michigan state government “shutdown” was theater, just like I believe the UAW strike against GM was theater.

  3. First, the state income tax hike brings it back to the 1999 level, so it’s being raised from a previous rollback. That rollback, under Engler’s tenure, has some basis with the recent, barely averted crisis.

    Second, I really like the idea of the legislators and governor forfeiting pay back to the General Fund if they can’t agree on a budget before the new fiscal year begins. The spineless windbags in the legislature did nothing for over 7 months since Granholm first presented her budget proposal in February. I’ll be voting against every incumbent at the next election.

    Third, I agree the shutdown was theater. Unfortunately, it seems like it was the only way to get the legislators to do their damn jobs! Too bad the state’s reputation suffered so badly as a result.

  4. aposteriori2 says:

    I feel that the reality that ANY State Legislators – House, Senate, Democrat, Republican or otherwise – would use a typical state budget as a political issue is abhorrent and that these budgets should be planned and settled very far in advance and with several contingencies for funding projections and actual state revenue realities. I would be of a mind to recall the entire bunch of them regardless of whether they met some arbitrary deadline or not! It is a strong argument for a cleansing of the entire Legislature!

    I am more than very ready to challenge some kind of a commonly held notion that “politics” is endemic and is just “the way of the world”.

    Good night and good luck!

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