Hi Tawanna , T. Boone Pickens has put his money where his mouth is, investing millions to rally us to action! However, here in Michigan many are experiencing economic hardship - those who wish they had any extra income just to make basic energy utilization improvements to their homes, businesses, and transportation. Why is Michigan near the bottom of the economic ladder? Let's start with Michigan's income tax structure: 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 (levying a tax, even if a business isn't profitable) - which was the problem with the Single Business Tax it was designed to replace. The MBT continues to penalize entrepreneurship and productivity, and Michigan is rapidly losing businesses, jobs, and families - daily !
I’m a volunteer for the Michigan FairTax Assn, inviting you to join us. Our goal is to REPLACE the Michigan income tax because the system is broken. We've been working hard to get the word out about a fairer, progressive consumption tax plan known as the Michigan FairTax. 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 climatein 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.
(We seldom email state-wide, generally notifying members nearby to events or initiatives.)
- - -
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.
Currently, goods / services prices and fees carry income / payroll tax compliance costs - "a hidden tax," ultimately paid by us. The FairTax will externalize these costs, making them visible. Michigan exporters will then be able to jettison 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 inseparably embeds taxation costs in prices of finished goods and services.
This plan is revenue neutral, as it-- ends "first fruit" confiscation of wages, stops the practice of hiding consumer taxes in retail prices, makes the true cost of gov't visible, and properly pays for gov't as we meet personal and family needs. Take action! - JOIN OUR TAX REFORM ARMYto bring Michigan back!
- - -
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