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Dave 734-323-8193cell
To try to fix Michigan's tax system, the legislature enacted the Michigan Business Tax. Trouble is, the MBT still remains a gross receipts tax - which was the problem with the Single Business Tax it was designed to replace. We've been working hard to get the word out about a fairer, progressive consumption tax plan known as the Michigan FairTax. In order to give Michigan voters the power to choose, we are laying the groundwork for a ballot drive to get the Michigan FairTax on the 2010 general election ballot.
The Michigan FairTax will both simplify, and stimulate, Michigan's business / jobs climate in a dramatic and ongoing manner. It will replace the income tax and current sales tax, with a consumption tax (sales tax at point of retail sale) while un-taxing all purchases up to poverty level - this means no more withholding of state tax from Michigan wage-earners' paychecks.
What's more, every Michigan resident-family will receive a monthly "prebate" check, in amount based on family size (.0975 x $ [ poverty level per family size] ). This will ensure that NO Michigan family will EVEN BEGIN paying the MI FairTax on goods / services unless, or until, they exceed poverty-level spending. Thus, the MI FairTax rate would effectively be 0% on all monthly family spending up to the monthly poverty level, thereafter it would be 9.75%. A reasonable average effective rate, inferred, would be about 5.5% (that's without putting anything away!) Monies placed into savings are not available to spend, and therefore would result in a further effective tax rate reduction.
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(We seldom email state-wide, generally notifying members nearby to events or initiatives.)
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Under a FairTax system, points of collection will be dramatically reduced (from millions of individuals to considerably fewer retailers, many of whom are already collecting sales tax). Michigan wage-earners will no longer experience income tax collectors adding interest and penalties to tax bills they only found out about after their return was prepared (and PAID for) at the end of the year. With a Michigan FairTax, income tax-- returns, audits, interest, and penalites vanish.
Under the current system, service providers must recoup income tax withholding and compliance costs, and oftimes Michigan consumers are the ones who pay these "hidden taxes" via higher prices. The FairTax will externalize currently-invisible, price-embedded costs, making them visible to consumers. Because of this, Michigan exporters will be able to identify and remove the FairTax, prior to shipment, making Michigan products more competitive, globally. The MI FairTax is NOT applied to non-retail, business-to-business purchases, as this would, again, inseparably embed taxation costs in prices of finished goods and services.
JOIN US - together, you and I can bring Michigan back!
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Made popular by the federal FairTax bill (H.R. 25, which was either co-sponsored or otherwise endorsed by several 2008 presidential candidates), this approach to taxation reaches across the political spectrum
Why the FairTax idea is right for America's working families.
Dr. Laurence Kotlikoff believes that it will take the FairTax to reverse unfunded U.S. government obligations, now above
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