Sunday, December 09, 2007

Michigan's legislative taxation policy SNAFUs

... are not over yet.

It's been fashionable lately to blame Michigan's legislative buffoonery on term limits rather than the more obvious cause; overdependence on reptilian brain synapses. The usual explanation is something like this - "They aren't around long enough to develop expertise or trust each other."

Even if they're around as long as our brain stems, evolutionarily speaking, no Republican will ever trust House Speaker Andy Dillon, whose gamesmanship and false "negotiation" tactics should not be forgotten. Worse, while Dillon was performing his duplicitous dance no one seemed to notice the horrendous provisions of the new Michigan Business Tax. The hastily passed 6% tax on a random array of services was so bad (in addition to imposing a $600 million tax it would have carried a $900 million compliance cost) it made some businesspeople see the MBT surcharge as the lesser of two evils. Andy Dillon claims avoiding one horn of the dilemma qualifies as supporting the other horn, but the legislature hasn't yet taken notice of the looming disaster the MBT represents for small business.

This oversight isn't an issue of trust, or even disingenuous Democrat brinkmanship. It is simply government incompetence. They don't even seem to realize what they've done.

Here's an example of the effect on small business: I almost threw up…

Then I called my competitor. I then called another competitor. I made a few calls and started planning my exit from being in business. I started thinking of how to move out of the state I love because some thieves in Lansing haven’t the faintest concept of economics. One of my competitors wondered aloud how insane that kind of tax was. I agreed.
Read the rest at the link above.

No comments: