no third solution » Democracy is Great!, Michigan, Taxation is Theft » Michigan’s New Taxes
Michigan’s New Taxes
If you live in Michigan, your state income tax bill just went up about 12%. In order to end the “shutdown,” legislatures voted to raise the income tax from 3.9% to 4.35%.
They also approved a measure which allows them to start arbitrarily taxing certain services. Aside from the obvious culprits (e.g., strong lobbies against the tax by cable carriers and sports teams) there doesn’t seem to be any rhyme or reason to the program’s carve-outs. For instance:
Cable television will avoid the surcharge, but investment advising will not. Manicures and tanning will be taxed, haircuts will not be. Lift tickets will be taxed, but not greens fees at the local golf club. Keeping your motorcycle in storage for the winter will be taxable, but keeping your boat at the marina for the winter will be tax-free.
Say what you will about the merits and demerits of democracy – but I don’t know a single person who is happy to pay an extra six percent for anything. If this measure had been put to a popular vote, it likely would’ve been close to unanimity, against either the income tax increase, or the new excises.
“Representative,” my ass.
Written by David Z
A lifelong Michigan resident, David holds a Bachelor's Degree from Central Michigan University and a Master of Arts Degree in Economics from Walsh College of Business & Accounting. Among other things, he is a market researcher, an avid snowboarder, beer-snob, former collegiate rugby player, bacon enthusiast and dog lover.
Filed under: Democracy is Great!, Michigan, Taxation is Theft
The new tax just caused many more people to begin the move out of Michigan.
It’s troublesome. I wanted the state to shut down. I wanted true budget cuts. I wanted the pork removed from the pig.
But all I got was higher taxes.
Sucks.
I found it funny that one of the new services to be taxed was “Baby shoe bronzing” I never knew that was a large enough industry to even tax. The government doesnt work, its a quick fix that will fall apart the state is now in worse shape than before and we continue to scare away any new investment, YAY MICHIGAN!
Ha HA! I’m moving Saturday for New Hampshire! Have fun, guys!
Actually, there are a lot of people (my lovely ex girlfriend) who don’t mind the tax. They follow the “Oh, it’s only a extra dollar and we should all help out” reasoning.
That’s what my friend’s wife says – she rationalizes it because it pays for his (teacher) salary.
Boggles the mind.
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