Thursday, August 30, 2007

Democrat Solution to Michigan's Economic Woes - Lets Raise the Income Tax.

Oh, that'll work.

Granholm and the Democrats are proposing that instead of the currently flat 3.9% state income tax that we currently have, a graduated tax will be put in its place.

The graduated tax will of course whack the middle class.

Nolan Finley gets it right when he writes Head off doubling of middle-class tax
Correspondence between the Granholm administration and legislative Democrats reveals at least one option raises the top rate to 9 percent, compared with the current 3.9 percent flat tax. Under one scenario, that highest bracket would kick in once household income hits $150,000.

That means a married couple, both top-scale school teachers or even Big Three auto workers working a little overtime, would be labeled "rich" by the Democrats and dinged for an extra $5,000 a year in taxes.

Certainly, $150,000 a year is a decent income. But it doesn't make a couple wealthy, particularly if they've got a big mortgage and a kid or two in college. Such families probably don't have a spare $100 a week lying around to give to the state.

These are the same families who will get hammered if the Bush tax cuts are allowed to expire. Ditto if the cap on Social Security taxes is lifted.

All told, state and federal tax hikes could add $10,000 or more to the taxes of solidly middle-class Michigan families.

The reason of course is the massive revenue take such a tax increase would provide
Changing Michigan from a flat-tax state to a graduated-income-tax state would raise nearly the additional $1.4 billion Granholm wants in new taxes.

Finley predcts the class warfare rehtoric that the Democrats will try to use to sell this massive increase -
Democrats will try to sell this to voters by convincing them it hurts the evil rich and not good, wholesome working families.
he then has a graphic accompanying the article showing it doesn't take much for you to be considered "wealthy" and get soaked by this tax increase.
Wealthy to the Democrats seems to be anyone not on Welfare or other forms of assistance.

Such a tax will have job-killing effects, dissuade the "wealthy" from considering Michigan as a place to live, increae the brain-drain of michigan graduates seeking to better themselves and keep more of what they earn, and make all of us in Michigan poorer, not richer.

Just say no to this massive tax increase.

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