Here's Why You Deserve a State Income Tax Cut [Michigan Capitol Confidential]:
"Recent Michigan legislatures have taken more from regular people with new tax hikes while giving more to politically well-connected interests through municipal bailouts and corporate giveaways.
It’s the people’s turn for something positive, and this is the right time and environment for a substantial state income tax cut.
Legislators are sympathetic, and want you to know it:
In every recent legislative session, bills have been introduced to lower the income tax rate.
But they never move.
The excuse is always the same: “Budget pressures are growing; we might have to cut spending if citizens get to keep more.”
The excuse is irrelevant.
Yes, a lower income tax rate is likely to reduce state government revenues in the short run.
But in the long run, income tax cuts encourage growth and can result in higher revenues to the state treasury.
Lowering tax rates lowers the barriers to investing in Michigan, and letting people keep more encourages them to earn more.
More money than ever is now rolling into the treasury.
Tax revenues are up from $25.2 billion at the low point of the last recession to $31.0 billion this year. Some of that increase should be returned to the regular taxpayers who pay the bills.
...In 2012, when Detroit Red Wings owner Mike Ilitch wanted hockey arena subsidies, Lansing found a way.
Today it's Dan Gilbert’s Detroit real estate holdings and yet another “economic development” scheme.
The final price tag is unknown, but the Senate, at least, seems poised to write a blank check.
Scores of other machinations to redistribute income to developers have been introduced in the current Legislature, and many have passed the House or Senate.
Others create more potential for distributing privatized gains and socialized risks, such as a Michigan Senate public-private partnership bill and a House-passed bill to involve developers in port authorities.
So when do regular people who receive no special government favors get their chance for some relief?
...Today, legislative appropriators are already discussing politically feasible ways to pay for more corporate handouts.
Those discussions should instead be repurposed to finding a way to let regular taxpayers keep more of what they earn..."