Well…this one may be long and convoluted but I really wanted to get to the Michigan budget crisis now that there are real numbers to be put with the plans that were presented by Gov. Snyder…..I’m not going to bore you with listing specifics because those numbers are readily available elsewhere and I just don’t want to swamp you with minutiae. So, let’s get to it….business gets their 1.8 billion tax break….and let’s be clear right away…no study has shown that tax breaks, in the absence of a rise in demand, result in an increase in jobs. With the retained profits of companies already a their highest point in history, why would you think that giving them more profits would result in hiring of more workers? It just doesn’t work that way and yet the faith-based economics of the repubs continue to throw money at business that just ends up padding the wallets of those at the top. The right way to do it would be to ensure there is an increase in demand by tax incentives or higher wages for workers…folks, this is econ 101 stuff that everyone seems to know but the repubs and it exposes this governor’s plan as driven by ideology more than economics. Did you expect anything else from a governor whose only claim to fame was to take his golden parachute worth hundreds of millions while shipping all of the jobs at Gateway to China?
Now, let’s get to who is going to pay for these business tax cuts….the analysis out today, and it is in the right leaning Detroit News, is that the majority of the “shared sacrifice” comes from retirees and the working poor…those who are the least able to afford this huge tax increase…and, make no mistake, this is being done because the repubs always make people pay that have no power or influence…the tax effect for the wealthy here in Michigan would be an increase that is, on average, 77 dollars a year while that of the retirees an working poor would be in the thousands….this is morally reprehensible but true to form for these thieves. Next, let’s get to the the idea of the Michigan film tax credit, that Snyder has proposed be limited to 25 million dollars a year. Under the current plan, for every dollar of tax credit, Michigan sees 6 dollars of economic activity and has resulted in the only area of job growth in the state; diversifying our economy and starting many new businesses that actually employ people…not just giving more money to the rich. But, as we all know, the film industry is a little more liberal leaning than the general population and it is payback time here in Michigan….Snyder will do anything, just like the rest of the repubs, to crush the opposition even if it means putting people out of work and destroying one of the only bright spots in Michigan’s economy.
Okay, I’m running out of steam here but you can see from just these few instances that “shared sacrifice” means shared by the poor and working people, imposed by the rich, benefiting the rich, and everyone else can go to hell….geez…