FairTax would encourage jobs
replace state income tax
I am a lifelong resident of Michigan and have became involved with the Michigan Fair Tax Proposal House Joint Resolution L and it's no secret that the state's finances are in disarray.
Also, I am very concerned over the fact the over 600 business leaders were invited, notified of the Michigan FairTax presentation/meeting held April 23 and that less than 10 percent attended. But so many complain about the Michigan Business Tax (MBT) yet only a few in Calhoun County wanted to know what could be done to correct the problem. What a shame!
The constitutional amendment contained in Joint Resolution L would eliminate many of the taxes that run businesses and jobs out of Michigan. It would ask voters to replace the current state income tax, sales tax, personal property tax, state education tax, sales tax on business purchases and single business tax with a 9.75 percent sales tax on retail goods and services. This is an increase of 3.75 percent to the current sale tax, however, it is offset by eliminating the 4.35 percent state income tax.
By making Michigan the only state without business taxes, this plan would encourage job creation by attracting new and recently departed companies to our state.
Low-income taxpayers are protected by the Fair Tax proposal through a monthly sales tax rebate that would be calculated in a manner similar to the personal exemption from the income tax.
In order for Michigan residents to have the option of voting on this innovative plan on the November 2008 statewide ballot, two-thirds of the state Senate and House of Representatives must vote in favor of Joint Resolution L. This will not happen in time for the November ballot. Taxpayer advocates have taken this to the people via signature gathering.