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Bob Beadles

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Replacement Taxes
« on: September 11, 2007, 04:18:30 PM »

                Democrats are saying that the Single Business Tax will have to be replaced with another tax or the state will lose $1.8 billion in tax revenue. This attitude takes a static view of the economy, but the economy is not static. It is dynamic or, to put it another way, tax cuts stimulate the economy and cause it to grow. Economic growth leads to more tax revenue.
   The best example of tax cuts leading to economic growth are the Reagan tax cuts. During Ronald Reagan’s 8 years in the White House, revenue to the treasury doubled due to the fact that Reagan’s tax cuts spurred economic growth.
   Business owners know that if an item has a fixed cost of $5, they will make more money selling 20 items for $6 each rather than selling 1 item for $10. The same principle holds true for tax rates. If the government takes a smaller percentage of company profits, those companies can produce more goods and services and they can hire more employees and pay those employees higher wages. If the government takes a smaller percentage of individuals’ wages, those individuals can purchase more goods and services. This increased economic activity leads to more government revenue at lower tax rates. Conversely, higher tax rates lead to fewer jobs, lower wages and higher prices.
   Suppose that instead of just eliminating the SBT, the state eliminated all taxes within the state except the 6% sales tax with half going to the state and half going to local units of government. What would happen? Michigan would immediately become a business magnet. Any company looking for a more profitable place to operate a business would be looking at Michigan. The 7% unemployment rate would drop like a rock. Residents of Michigan would probably see full employment within one year.
   What about government revenue? There would be a short term drop in revenue, but with the economic growth due to the kind of tax cutting I’ve suggested it’s probable that over the long term (two plus years) government revenue would increase to at least its present level.
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Bob Beadles

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Re: Replacement Taxes
« Reply #1 on: September 13, 2007, 02:56:19 PM »

                Democrats are saying that the Single Business Tax will have to be replaced with another tax or the state will lose $1.8 billion in tax revenue.


The Democrats are trying to play a shell game with taxation, move the financial burden from one group to another. Elimination of unneccessary taxes, government and regulations is the only way to bring businesses to Michigan without passing the burden to another "group" of defined taxpayers.
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Normal Joe

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Re: Replacement Taxes
« Reply #2 on: September 13, 2007, 03:15:35 PM »

Why do politicians (and I have known a few) think that they are entitled to pick the peoples pockets? Not all are like this, but most are from my experence with them. They expect things. They expect to be treated in a special way, and not be accountable for their actions until election time rolls around. It seems to me that people who are in office should work for the good of all the people and not their own special interests or political parties. :o You can put a lot of attorneys and judges in the same category too. I guess it just must be the changing society where dis-honesty and bad behavour is tolerated and deemed acceptable. Getting power without morality is what it's all about folks. Bet you've seen plenty of it if you look for it. What's the answer??  Think before you vote them in..look at their track record...check out their credentials...use Detroit and Kwame Kilpratrick as an example...when you ask for trouble..you can expect to get it...
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If all the leaves on all the trees could talk....

lordfly

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Re: Replacement Taxes
« Reply #3 on: September 13, 2007, 03:25:14 PM »

Government has a bad habit of having "feature creep" -- they keep adding more stuff to provide for everyone.

A smaller government with more checks on its power would be good for everyone.
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numberone

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Re: Replacement Taxes
« Reply #4 on: September 13, 2007, 04:19:20 PM »

I would like to see a politician that would be willing to shrink government.  I can't count the times I have been to state offices, county offices and city offices just to see employees sitting around trying to decide who was going to have to get up out of their seat and assist me.  If private corporations were run like the government offices, I am sure most of them would have been bankrupt.

 I also agree with a previous post about the possiblility of making our representatives/legislators part time.  Private industry has made lots of cuts and they are still operating.  Shouldn't this tell Gov. Granholm something? 
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Griff

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Re: Replacement Taxes
« Reply #5 on: September 14, 2007, 04:27:40 PM »

'WE' need to insure that 'OUR' government does what we do at home...

1.)Spend less than we make
2.)Live below our means
3.) Save for emergencies so that we don't have to borrow when emergencies arise
4.) Say 'NO' to ourselves until our tongues bleed....

This ain't hard. Gaining accountability from our legislators shouldn't be hard either.

peace,
Griff
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SMASH

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Re: Replacement Taxes
« Reply #6 on: September 14, 2007, 05:08:41 PM »

Right on.
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