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In and outs of the political campaigns, focusing on Michigan and Lansing, Tim Skubick will report regularly throughout the primary and then general election campaigns.

Tuesday, April 12, 2011

Gov. Cries Uncle on Pension Tax

The governor finally caved on his demand for an across the
board tax on all pensions and by rying uncle, he has demonstrated he is
willing to compromise and on that front he should take a bow.
When he proposed a tax on public and private pensions last
February, he bravely put up a good front and argued it was the "right
thing to do." Only problem was, from the opening salvo, this thing was
DOA as senate Republicans quickly and decisively dumped all over the
tax.
The governor took his time tossing in the towel but in the
end,
he proved he could count and he could not get to 20 votes in the
Senate, so instead, he agreed to revise his program and now the
modified pension tax has a better chance of seeing the light of day.
He also proved that he was willing to compromise which is not
a
dirty word. He, of course, said nothing about caving in, choosing
instead to to say his original plan was a "starting point for
discussion" implying that he knew he would have to alter the plan all
along.
Give some credit to the Senate GOP leader Randy Richardville
who leveled with the governor when he needed to be leveled with.
Richardville is an old hand at writing a compromise and Mr. Snyder saw
the handwriting on the wall that he was getting no where fast.
In this case, he discovered that just because he thought he
was
right, that did not mean that everyone would agree with him and that's
a good lesson to learn as he seeks to mold other "deals" on other
issues down the road.
Being right is one thing, but knowing when to chuck that
attitude is a more important trait to own and the new governor has
shown, he gets it.

3 Comments:

Anonymous Rob Seeterlin said...

I hope the Governor gets the same message on his raid of the School Aide Fund to finance Colleges and Universities. This fund since the early 60's has been for K-12 education. Taking $900 million away for higher education is wrong. It is a violation of the intent of the voter approved Lottery and Proposal A. State lawmakers need to educate this new guy on how things work and control the purse strings.

April 14, 2011 at 12:15 PM 
Anonymous Anonymous said...

And the rich get richer....

Why doesn't the state just move to a progressive tax while benchmarking public sector benefits with private? N

ot a big fan of welfare. Pay to play I say. Everyone should pony up something but those who can give more should until it hurts somewhat like the guy struggling at the bottom. Having to give up your 1st row Tiger tickets for 8th row is not going to hurt as much as the guy who has to sell his boat is not going to hurt as much as the guy who can't afford to send his kids to college is not going to hurt as much as the guy working three jobs to feed his wife and two kids is not going to hurt as much as the guy whose two kids have autism and his wife has cancer and he barely has money to put food on the table. Someone has it better and someone has it worse than us, that is how life is. But does not everyone have a certain responsibility to his fellow man?

Public sector jobs look more attractive these days than private. I will have my kids get into public sector ASAP, do their time, and then get into private sector and double up if they still need more money. Gotta like capitalism. Worst form of government except every other form of government. Can't live with it, can't live without it. It is not going away any time soon.

Eliminating MBT cuts partnership taxes from 11% to 4.25%. Quite a windfall for all partnerships but again some will fair better than others. A law partner making $400,000 per year paying MBT taxes of $27,000 and flat tax of 4.25% gets a windfall of $27,000. A law partner making $40,000, paying MBT taxes of $2700 gets a windfall of $2700. C Corporation ends up paying about the same but maybe more if the State Senate increases the rate above 6%.

I liked the idea of government not picking winners and losers but if I had my choice, I would tax high income individuals at a bit higher rate than low income individuals.

Want to eliminate corporate and Wall Street greed, tax the heck out of it? Many years ago, we use to have a top tax rate of 90%. Those people will say they will leave the country. Would not that be a good thing!!!!

April 17, 2011 at 7:36 AM 
Anonymous Anonymous said...

Why doesn't the state just move to a progressive tax while benchmarking public sector benefits with private? Public sector jobs look more attractive these days than private. I will have my kids get into public sector ASAP, do there time, and then get into private sector and double up if they still need more money. Gotta like capitalism. Worst form of government except every other form of government. Can't live with it, can't live without it.

April 17, 2011 at 6:57 PM 

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