Senate Republicans Strike First
Governor Jennifer M. Granholm (D, MI) isn’t scheduled to unveil her new tax plan formally for another couple of weeks. Republicans in the Michigan Senate, however, managed to strike first with their own plan, which they are calling the Business & Economic Stimulus Tax proposal or BEST.
The BEST proposal was introduced in Lansing on Thursday by Senate Majority Leader Mike Bishop (R-12, Rochester) and Senator Nancy Cassis (R-15, Novi) cuts taxes for Michigan businesses by $290 million. A major lynchpin of the legislation is the choice of taxation it offers. Businesses with gross receipts between $350,000 and $15 million will have the ability to choose to pay either a modified gross receipts tax or a business income tax.
Neither Mr. Bishop nor Ms. Cassis offered any specific proposals at to how the State of Michigan, which is already straining under a budget shortfall, should make up for the loss of $290 in tax revenue. Instead, they offered the standard GOP mantra that "government should live within its means".
Quite frankly, I'm getting tired of people using that line. As a private citizen who happens to write a blog, I manage to live within my means. However, when I take on a new project that might effect my income, I always have an idea of what I'm going to do as a result. Press conferences, I'm afraid, will not solve Michigan's problems.
The BEST proposal is contained in Senate Bills 94-96. Those bills have been sent to the Senate Finance Committee for consideration. Since Ms. Cassis chairs said committee, one should expect a fairly prompt hearing.
