Michigan has revenue today to support a population of about 7.5 million people.
The problem is we have over 10 million people in our state.
So we either need more revenue--higher taxes--or we need to continue to make drastic cuts in our state budget and state services. Another answer might be different types of taxes that tax different people and businesses in different ways and produces more tax revenue than we get now.
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I think making more cuts to the state budget will only worsen our situation, not make it better. I think the best thing to do is increase liquor and cigarette taxes which I believe the State of Michigan is doing. I also think the state should forego raises. I think the state should increase property taxes, and perhaps move to a system similar to Montana. Montana has no sales tax, and they state taxes property including livestock, heavy machinery, and business equipment. I think this would help create some state income, and the money would be taken from people who have it (ie. the rich) instead of the poor. I think it would be a bad idea to increase the cost of something so necessary to survive. These different taxes would not increase the number of people dependent on state aid, which would not create more expenses, and the state would make a profit.
ReplyDeletemaking cuts would indeed worsen our situation. raising taxes would also be doing the same. but if we didnt raise our taxes than you would need to make cuts in the budget that we should have to go though. the budget has been streched far enough. i think that if we made more cuts then the education and more needed things would loose a great portion of their budget. so i would raising taxes would be that best choice.
ReplyDeleteI would have to go with taxing the rich. Taxing the rich and big companies would provide support for other people. It's a difficult decision whichever way they decide to go, but something does need to be done. I don't think cuts would be a solution because that just means more unemployment.
ReplyDeleteI know for a fact a lot of families who make a decent living would be more than willing to decline a bonus or raise, and accept a higher income tax. I think that is something Michigan should consider.
ReplyDeleteAlso, I agree with raising the tax on tobacco and liquor (and hopefully it's already begun). People will still buy the products.
And maybe it'll even deter a couple from buying the product (tobacco) all together. Win/Win situation.
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ReplyDeleteI think it may be wise to lower minimum wages a tad so employers can hire more ppl to potentially eliminate or cut down unemployment. I also agree with the taxing on cigarettes.
ReplyDeleteI think the idea of sin taxing is a great and positive idea, not only for the economy, but it also influences people to make healthy choices in their lives. The other thought i have is taxing the rich more heavily, it was already stated but they are the individuals with money. Why heavily tax those who are trying to make ends meet, when there is a part of the population with such a large surplus of finance. In reality, we are a nation of people, and the majority of the people are struggling. if we are going to raise taxes, why not do it in a way where those affected arent made bankrupt by it, and it benefits the majority by way of larger state budgets, better education, healthcare and so on.
ReplyDeleteI believe in these economic times, raising of any taxes would be detrimental to our states economy. We need to make cuts in programs and in state employees, not raise taxes on already burdened people. I am also very against sin taxes because traditionally these target lower and middle class people who are already having a rough time. Things like cigarettes are non elastic and people will not quit just because of the higher price. We need to give tax incentives to business and attract new business to the state of Michigan , not raise taxes. We also need to try and use market based green energy solutions to try to attract new companies and jobs to our beautiful great lakes state.
ReplyDeleteI am also against sin taxes. As mentioned above, it will not stop people from using alcohol and tobacco, and significantly affects the middle and lower class. Americans are saving more money now that ever before in anticipation for hard times. Any tax raises would only worsen the situation by giving people another reason to not spend money. I believe that business tax incentives are a great idea to bring new businesses to the area to strengthen the economy.
ReplyDeleteTo fix the economic issues that the state is having there has to be a balance between cuts and and raising taxes. We need to cut spending in areas that are unnessecary and find new ways to add some revenue. I like the idea of sin taxes because you are adding costs to things that are not essential to life and actually detremental to a healthy life. They do not hurt people that are just trying to get by, only people that have the extra money to make unhealthy decisions to begin with.
ReplyDeleteIn response to Beweber, I do not feel the point of the sin tax is to stop people from boozing or smoking but rather to add revenue in areas that wont hurt the general population. If they have the money to spend on booze and smokes, I do not find it unreasonable for them to throw in a little extra to help the state.
I also feel a viable option to find more revenue would be to legalize marijuana and tax the hell out of it. Studies show its less harmful then alcohol and we could turn it into another source of revenue for the state while not hurting the general population. Just something to consider.
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ReplyDeleteThe middle-class and poor have been asked to and have been making concessions and sacrifices for over twenty years as govt responds to economic woes and declining revenues. It's time for business and the wealthy to consider themselves a part of America too and to make sacrifices. When they start to whine about being asked to make these 'sacrifices', simply tell them it's their turn.
ReplyDeleteIn the 1950s we had a republican president(Eisenhower...certainly no 'raving liberal or socialist') and the tax rate for wealthy Americans was just over 90%. The sky didn't fall, and that time period was one of our nation's strongest economic times.
I think that no matter what we try to do to rectify the situation some one will be unhappy. Whether its taxing different certain people or taxing everyone, people are always going to complain. However, if the current trend of a family moving out of MI every 12 minutes continues, then eventually we will get our population down to an easier population to support. But I'm not saying that that's what we should aim for because we need to keep a lot of people in MI if we want to try and keep our economy from completely failing.
ReplyDeleteI think I would have to agree with Johnson. Taxing the rich, especially in our current economy is the best option. Make the government money from people who actually still have discretionary income. I think we also need to start cutting some spending in our corrections department. There's no reason to keep spending the money on some of the people left in our jails and prisons.
ReplyDeleteI definitely feel that we should increase taxes on the rich. I recently found some interesting statistics that sort of shocked me.
ReplyDeleteThe Obama administration is moving the Bush tax cuts for the wealthy from 35% to 39.6%.
At the end of Reagan's first term it was 50%.
Under Richard Nixon it was 70%.
Under Dwight Eisenhower it was 91%.
here is a chart that shows how (on a national level) the tax rate for the rich has changed over the years.
http://www.flickr.com/photos/dirich111/3361071764/
I just wish people would quit complaining about how bad the economy is and get up and so something about it instead of just sitting around collecting unemployment. My family all worked for GM and Delphi and they have lost their jobs but they are out there looking for different ones. They may not be as good of jobs, but an income is an income. People cant keep sucking up government money and expect the debt to go away.
ReplyDeleteAnd with the taxes issues, people need to understand that a nation in debt cannot continue to cut taxes and get out of debt. Thats like slurping a spaghetti noodle from both ends, it is gonna deplete until there is nothing left.
I think that the tax codes need to be revised to fit the needs the state has now. Obviously something is not working because we only have enough money to support 7.5 mil and we have 10 mil. Is there any other states with this problem and what are they doing to solve it...
ReplyDeleteIn response to Chris Richards, I agree with sin taking. I think that if you want to waste your money on things such as cigarettes then you should be the one being taxed for the improvement of the economy. Doing this will also hopefully give an incentive to living a healthier lifestyle. Also taxing the rich is an excellent idea. They have some extra money for taxes, why tax the middle and lower class who barely have enough to pay the bills? I think that taxing the smaller population that is rich will help the larger economy that is struggling rather than taxing them too, that isn't helping them, but hurting them.
ReplyDeleteI also agree with gharcz, people keep complaining about the state being in debt, but they also don't want the taxes to rise. We have to do something to be able to pay off the debt, so pick one or the other, you can't have your cake and eat it too.
in response to beweber, i really must ask you what money it is that people are saving. you say that people are saving "more money than ever" this is completely false, people dont have any money, people are defaulting on mortgages, being laid off left and right. sin taxes will do nothing but recieve more money from people who obviously have expendable income (for cigarettes/liquor). If they can't afford it in the first place maybe they shouldnt buy these products seeing as how they are in no way a necessity.
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