Saturday, April 14, 2007

Michigan FairTax?

From the Gazette:

Group wants tax issue on 2008 ballot

LANSING -- Businesses in Michigan would pay no taxes and individuals would pay only property taxes and a higher sales tax under a proposal that could be on the November 2008 ballot.

Roger Buchholtz, director of the Michigan FairTax Association, said Friday during a taping of public television's ``Off the Record'' program that legislation is being drafted now that could put the matter before voters next year.

Two-thirds of the House and the Senate would have to approve the proposed constitutional amendment for it to go on the ballot. If the measure fails to pass the Legislature, the group plans to collect hundreds of thousands of voter signatures to place it on the ballot.

Buchholtz, a Kalamazoo businessman, said the change would boost Michigan's business climate by eliminating any tax on business, which he argues actually is paid by consumers. The plan would raise the same amount as current taxes raise for general and school aid funds -- around $20 billion annually.

Low-income residents would get monthly checks to shield them from paying much of the higher sales tax, which Buchholtz said would be roughly 2.5 cents more on the dollar than the current 6 cents.
More information available here.

4 comments:

Matthew said...
This comment has been removed by the author.
Matthew said...

What is everyone's opinion of this? I was checking out the FairTax website and it seemed fairly legit. It may hamper spending in the short run, but drastically increase investment and likely create enormous value in the long run.

I haven't looked into any hangups, however, and I'm sure the FairTax website painted a pretty bias picture of their plan. What does everyone think? It seems obvious that our current tax code needs massive overhaul; is the FairTax it?

Anonymous said...

Is this similar to what the state of Florida has?

Matthew said...

Florida has no state income tax, however Federal Income tax and the myriad of other federal taxes are still in place.