Michigan has had since Oct. 1 to try to do better than the unfair service tax they came up with in the wee hours of the morning on Oct 1. Have they been able in two months to come up with a better plan? No they have not as the deadline is here again.
Michigan law will not allow the government to run without a balanced budget. The budget had to be balanced by Oct.1 which it wasn't and the government was shut down for about four hours on the morning of Oct.1
What they finally came up with was a temporary state budget that included a highly controversial 6 per cent tax on some services.
The tax is to go into effect on Dec.1.
Almost as soon as the tax was agreed upon the same lawmakers who passed the tax agreed it needed to be repealed. They want it replaced with a surcharge on the state's business tax.
Since nothing has been decided upon businesses do not know if they need to start charging the tax tomorrow or not.
Of course the Senate is in session today to see if an agreement can be reached with the House to repeal the tax on services.
Why did these lawmakers wait once again until the deadline?
Businesses are very upset about this new tax which does not make much sense. Business owners have been at the Capitol to attempt to have the service tax repealed. The opponents have denounced the service tax and the state government's failure to repeal the tax.
They say that it is
unthinkable and catastrophic for the state's business climate.
The owners of landscaping, warehousing and consulting firms said the new tax is a nightmare of complexity and confusion that would inflict huge compliance costs in addition to the tax itself. Sarah Hubbard of the Detroit Regional Chamber said Michigan business would spend nearly a billion dollars interpreting and adapting to the new tax, and many still won't know whether they are following the law.
State workers have posted a
web site that has information that is needed.
The tax does not make much sense the way it was crafted. You will pay 6 per cent on ski lift tickets but not on golf. If you get get your nails done it will cost the 6 per cent but if your hair is done you're not taxed on that.
Some business fear that they will lose customers to firms in other states to avoid the tax. Some businesses are saying they will move out of Michigan which will further hurt the economy in Michigan.
I had
two articles that were
posted on this in Oct.
