Michigan Considers a Tax on Services
According to an article in the Detroit News, there are those in Lansing who are considering a sales tax on services as a way to get a grip on Michigan's budget problems. The proposals currently being floated include lowering the sales tax rate from 6% to 5%, but extending the tax itself to include personal services - such as hair cuts, legal services, movie tickets and so on.Lieutenant Governor John D. Cherry, Jr. (D, MI) told reporters that all options should be on the table as Michigan tries to find a way to solve its budget problems. Michigan Senator Ron Jelinek (R-21, Three Rivers) also said that everything, including a new tax on personal services, should be on the table.
Quite frankly, I'm thrilled that there are so many people who think that everything should be on the table. I mean, if every option is on the table then that must mean that folks in Michigan are willing to consider things that aren't a new tax.
For example, the taxpayers of Michigan currently provide two mansions for our governor - one in Lansing and a second on Mackinac Island. There is also a Governor's Residence Foundation, which covers at least some of the expenses associated with maintaining the property. Still, however, that isn't enough to completely cover the costs associated with maintaining the two residences.
I, therefore, propose that we start renting out the Governor's Mansion on Mackinac Island whenever the Governor isn't using it for state business. The rental income from this could make a nice dent in the overall cost of maintaining two residences for the Governor and the aforementioned Foundation would be perfect vehicle by which to carry out the rental.
Another option that should be on the table and looked at closely is Michigan Works! and the Michigan Talent Bank. The Michigan Talent Bank is an on-line data base that lists jobs that are available in Michigan.
The problem is that there are already several such sites available to the public, such as Monster.com, HotJobs.com and MotorCityHelpWanted.com. Those sites exist without costing the taxpayers a single penny. One question that should be asked then is: why should the government actively compete with the private sector to provide a given service?
Last, but certainly not least, is the issue of Michigan roads. Every time Michigan's economy slows down, one politician or another proposes that we accelerate road construction as a way of stimulating the economy. Governor Jennifer M. Granholm (D, MI), in fact, made such a proposal just last summer.
Of course, given the current state of Michigan's job market, it's rather clear that spending more money on roads hasn't done anything to improve our economy. Therefore, I believe it would be a very good idea to put a few road projects on the proverbial back burner for the next year or so.
Michigan has done so much road construction in recent years that a cut-back now would not spell an end to transportation in the Great Lakes State.
After all, as Mr. Cherry and Mr. Jelinek pointed out, every option should be on the table as we decide how to deal with Michigan's budget problem. In the coming weeks, we will soon learn whether they are serious about that or if they are simply looking for more ways to suck more money out of Michigan taxpayers.
