Gov. Snyder unveils his budget plan
Proposes deep cuts in spending, business taxes
by Todd A. Heywood, michiganmessenger.com -- Feb 17, 2011
Republican Gov. Rick Snyder, before a joint session of the House and Senate Appropriations Committees this morning, unveiled a budget plan full of deep spending cuts and new taxes on seniors, the poor and the middle class to offset a business tax cut.[...] Snyder says the proposal will result in “shared sacrifices,” his plan to restructure the tax system will strongly shift the tax burden away from businesses. Under Snyder’s plan, the Michigan Business Tax (MBT) will be axed and a new six percent corporate tax will replace only part of the MBT revenues. Overall, businesses will see a reduction in their taxes of nearly $1.8 billion.
That $1.8 billion business tax cut is being offset by tax increases and steep cuts to other parts of the budget, including a new tax on public and private pensions for retirees. Under current law, public pensions are entirely untaxed in the state, while private pensions are exempt from taxation up to $45,000 for individuals and $90,000 for couples. That tax would raise about $1 billion a year in new revenue.
[...]Snyder has also proposed a cut of 15 percent to state university budgets, and proposes a four percent — or about $470 per pupil — cut in local K-12 spending. Snyder says his plan protects community colleges. He would also provide a pool of cash as incentive for universities to keep tuition increases below seven percent.
Unsurprisingly, his budget met with immediate criticism.
No Kidding!
Quietly, shifting the State's Tax Revenue stream from Corporations to Seniors, could raise a few eyebrows.