Taxation

A Proposal to Fix Michigan (December 2008)

I. PROPOSAL - The Budget Line Item Proposal

This proposal eliminates all constitutional and statutory restricted funds in the Michigan state budget and limits every budget’s general and miscellaneous category to one percent or less. All funds received will be deposited into the General Fund and must go through the appropriations process. The state departments and the legislature must provide a line item for every expenditure. NOTE: This proposal is being introduced by State Representative Mike Simpson please contact his office and express your support for this proposal. Email: mikesimpson@house.mi.gov Phone: 517-373-1775 or 888-347-8065

II. PROPOSAL - The Regulatory Proposal

This proposal takes away the authority from all Michigan state departments and regulatory groups to make or define rules and regulations, and put that authority back in the hands of the legislature. All current and future regulations will have a three year sunset. Failure to review regulation will automatically eliminate it. Within one year of the passage of this proposal, the legislature will review all existing regulation; any regulations not reviewed would be eliminated. A committee of private sector representatives will be appointed to make recommendations to the legislature to eliminate the top 30 most uncompetitive and job-killing regulations. NOTE: This proposal is being introduced by State Representative Arlan Meekhof please contact his office and express your support for this legislation. I served with Arlan, but I have known him for many years. I highly respect him as a colleague and appreciate him as a friend. Email: arlanbmekhof@house.mi.gov Phone: 517-373-0838

III. PROPOSAL - Michigan Fair Tax Proposal

Michigan Fair Tax Proposal (Resolution L 2007)
The Michigan Fair Tax Proposal would amend the Constitution of the State of Michigan to eliminate the Michigan Income Tax of 4.35 percent and the Michigan Business Tax and replace those taxes with a 9.75 percent sales tax on all consumer purchases of goods and services, but does not tax business to business transactions. No other statewide tax could be restored, enacted, or the sales tax increased without a vote of the people. The state shall reimburse to every Michigan citizen’s household an amount based on the Federal Poverty Level Guidelines. This proposal would constitutionally guarantee revenue sharing for counties, townships, cities, and villages. NOTE: The MFTP Resolution is being introduced by State Representative Joel Sheltrown please contact his office and express your support and appreciation. I appreciated working with Rep. Sheltrown while in the Legislature, he cares about people, focuses on policy not politics, and is a man of integrity. Email: joelsheltrown@house.mi.gov Phone: 517-373-3817 or 888-347-8103.

COMMENTARY:

PROPOSAL I: The Budget Line Item Proposal
This ballot proposal would constitutionally forbid the Legislature from enacting legislation to restrict or redirect any current or future dollars from the general fund automatically. All dollars received by the state of Michigan will go to the General Fund and be subject to the appropriations process on an annual basis. Each state department’s budget must provide a line item for every expenditure, and have to ask the Legislature for every dollar they receive; no more slush funds, and no more hidden money. Each department budget will be limited to only 1% of the gross amount appropriated by the legislature in that budgets general and miscellaneous categories. The state’s budget must also not have greater than one percent of the total budget in a general or miscellaneous category. Currently, the state legislature has direct control over only 8 to 10 billion dollars. 20 to 25 percent of each individual department budget is in general and miscellaneous categories and has no line item. No one, not the people, not the legislature, not even the governor has any idea what 20 to 25 percent of 44 billion dollars is being spent on. We need transparency, the people need to know how their tax dollars are being spent, the current system is unacceptable and must be changed. If we are to have “representation with taxation,” as our constitution clearly states, then the Legislature must have direct control of more than 10% of the money. (For more information go to www.FultonSheen.us )

PROPSAL II: The Regulatory Proposal

Michigan, California, and New York have more regulations than any of the other states. They are also the top three exit states, from which people and businesses are leaving. Some regulation is necessary, but too much regulation increases the difficulty and time it takes to do business, as well as drives up the cost of doing business. If you make it too difficult, too time consuming, and too costly to do business, businesses will go somewhere else, which is exactly what’s happening. Currently, we have so many regulations there is no way to determine whether they are helping, hurting, or doing anything at all. The three year sunset will require all regulations, which currently exist or are enacted in the future, to be reviewed every three years. Failure to review and renew any regulations within a three year period would mean that they would cease to exist. The authority to make rules and regulate would be removed from the unelected departments, regulators, and bureaucrats and be put back in the hands of the Legislature, where it used to be and where it belongs. (For more information go to www.FultonSheen.us )

PROPSAL III: Michigan Fair Tax Proposal

The MI Fair Tax would raise the current 6% sales tax by 3.75 cents, but residents would now keep 4.35 cents more on every dollar they earn, which is currently taken from their check and sent to the state. The amendment would repeal any statewide tax enacted after January 1, of the year following passage, and no other statewide tax could be restored, or enacted, or the sales tax amount increased without a vote of the people. Elimination of the Personal Property Tax, Gross Receipts Tax, and State Income Tax would make Michigan the least expensive, least cumbersome, easiest to comply with, and most competitive state in the nation. Manufactures will greatly benefit and many will relocate to Michigan in order to take advantage of the lower cost of doing business because of the favorable tax structure. It would constitutionally restrain government from imposing any new statewide taxes. Now everyone would be a part of our state’s tax base; illegal aliens, the underground or under the table economy, and out of state businesses. We would also export a huge amount of our current tax burden to out of state residents. The MI Fair Tax would make government subject to the same economic up turns and down turns as its businesses and its citizens, and allow people to pay tax only on what they purchase. Now what could be fairer than that? (For more information on the MFTP go to: www.FultonSheen.us & www.mifairtax.org )