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Dear
Legislator -
There is
an easy alternative to taxing pensions, taxing businesses at 6%,
cutting budget items that you don't want to cut, etc. Now
would be the time to advocate passage of the MI FairTax. If
not acted upon now we will be in the same position next year ... and
every year thereafter, as the planned tax changes are not
sufficiently significant to change economic
dynamics.
Since the MI FairTax, a
constitutional amendment, must be approved by the public and can't
be enacted immediately, legislation needs to be
enacted now that would provide the revenue to close the current
budget hole and also that would be compatible with the MI
FairTax. In essence, the process to meet current budget needs
and the long term solution, adoption of the MI FairTax, could be
combined in a two step program.
Two Step Program
Step #1 would be the expansion of the current sales tax to services
at the current 6% rate or less, while eliminating the MBT entirely
and decreasing the income tax on individuals. This step would be
tied to Step #2, a vote of the people of Michigan to increase the
sales tax rate on new goods and consumer services while
eliminating the personal income tax
entirely.
To prevent the expansion of the
sales tax to services without the permanent elimination of the MBT
and the income tax on individuals, the expansion of the sales tax to
services in Step #1 would be sunset if the MI FairTax was not
adopted as a constitutional amendment.
For Step #1 to be acceptable to your
Constituents, it is important that these two steps be linked to
each other.
Why should the MI FairTax be
adopted?
- It taxes the underground economy (illicit income is taxed when
spent)
- Sales tax revenue is the most stable revenue
- Un taxing business will change business location and expansion
decisions
- Michigan will have the most attractive business tax
environment in the U.S.
- All businesses and individuals will be treated equally (no
loopholes)
- Tax compliance cost for individuals would be eliminated, and
for businesses reduced by 90%
- Tax enforcement expense would be reduced by 70% - 80%
- Our representative form of government will be enhanced by the
elimination of the trade in tax favors
- Un taxing productive behavior (work, saving, investing, etc.)
encourages such behavior
Bottom line, with the MI FairTax Tax
Replacement Plan, Michigan becomes the most attractive state in
the country in which to live and do business; and there are stable
funds to operate state government. Companies and families will
return to Michigan rapidly where they can
thrive. The Michigan FairTax Association is
here to assist you in any way possible with documentation and
answers to your questions. Roger
Buchholtz
MI FairTax Association, President
(volunteer) roger.buchholtz@mifairtax.org www.mifairtax.org
269
345-0940 | |
