Michigan Votes Forum

Introduced in the Senate on December 2, 2003, to increase from 3.9 percent to 4.00 percent the state income tax rate for the period Jan. 1, 2004 until July 1, 2004. After July 1, the rate will drop to 3.9 percent. Under current law, the rate is 3.9 percent beginning Jan. 1, 2004. The bill is tie-barred to Senate Bills 672 and 673, which eliminate 40 percent of the Single Business Tax businesses pay on their employee health insurance costs. See also House Bill 4367 and Senate Bill 556

The vote was 24 in favor, 14 opposed and 0 not voting

(Senate Roll Call 599 at Senate Journal 102)

Click here to view bill details.

Senator Cropsey's statement, in which Senator Sanborn concurred, is as follows:

I voted against Senate Bill No.852. This would have delayed the income tax rollback by six months, therefore, costing the citizens of the state of Michigan $77 million. I think it is important to note that a lot of work has gone on in the House and in the Senate on balancing this budget. I would like to compliment the Majority Leader, the Minority Leader, and all parties for coming up with a balanced budget.

However, it should also be noted that the first negotiations that were going on did not have any pause in the rollback; that there was proposed to us a balanced budget that we could have adopted. There were certain parts of that that were unacceptable. I think the money could have been arranged so that there would not have been a pause needed in the income tax rollback. As it is, there are significant rainy day funds that are at the local level at local units of government, in K-12 schools, and in higher education.

This is a tax that the people have been promised would be rolled back and is not going to be rolled back. It is now going to be delayed for another six months, and I think that the several members in the House have come up with about $260 million in additional savings, whereby we would not have needed to have this $77 million coming in that we were not planning on for this fiscal year. We should be getting in there squeezing the budget tighter, making it so that we can balance our budget without having this extra revenue.

Senator Cassis' statement is as follows:

Indeed we all know that negotiations around a budget are anything but simple, and I do have the greatest respect, as we all do, for those who are involved in those negotiations. However, I perceive this budget as a shuffle and a shift, a Band-Aid and not a cure. We see our families and our Michigan businesses when they have less income coming in. They have to deal with that, and they have to cut spending and sometimes fairly deeply. It is with that in mind I ask a question, why should not government be held to the same standard?

The income tax rate reductions certainly was a promise made, a promise to be kept, and for these reasons, I have voted against the pause in the state income tax reduction.

This bill (or it's equivalent) is coming up for a vote in the Michigan House tentatively later this week…possibly even December 18th.

If you are disgusted with the lack of any discernible cuts in the state’s budget, now is your time to act.

Contact your local representative and let them know that you feel that this sets a unfavorable precedent where legislators can propose a law one minute, only to change it the next because “unfavorable conditions”.

Let your local official know that you know where your money can best be spent and do not require someone from Lansing to tell you otherwise.

It’s your money, remind them of that fact!

There is plenty of fat yet to be cut from state government. This deal is shameful.

This may be a bit harsh, but makes the point well. The Mirs News Capitol Capsule posts the following as their "quote of the day":
"We turned the trick for $77 million now, so a few months from now can we be expected to act like virgins?"
-- Rep. Ken BRADSTREET (R-Gaylord) on the possibility that the Legislature will be asked to extend the income tax rollback freeze later this year.

There are people who are suffering and who depend on government services. Additional cuts would be cruel.

The rest of us have our own expenses to deal with.

Cries of, "Well, it will only cost you $XXX/yr," are beginning to wear thin with those of us who actually pay taxes in Michigan.

Rep. Sheen, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

I am voting against the income tax roll back, because I believe we should have made cuts in other areas to provide those additional education dollars, and not take it out of the pockets of Michigan citizens. Had we done nothing, the citizens of Michigan would have received a tax cut; because we did something their taxes are higher. I support the result, but I don't support the method of achieving it. Michigan's economy, its businesses, its schools, and its citizens would have been farther ahead, better off, and more capitol would have been generated, if we had retained the income tax cut, and made additional cuts to the states budget."

Rep. Huizenga, having reserved the right to explain his protest against the passage of the bill, made the following statement:

"Mr. Speaker and members of the House:

It was a difficult but necessary decision to vote 'NO' on SB 852, the pause in the income tax reduction. While great progress has been made in the budget process we can, and must, do a better job of putting in place structural budget reforms. Michigan ranks high in personal tax structure (16th in the nation) but even higher in our business tax obligations (5th in the nation) and clearly we need to continue to make Michigan a more friendly place to do business. We are constantly trying to attract businesses to Michigan but we must be more concerned about our current employers who are under constant pressure to be more and more efficient.

The same must hold true for government at a federal, state and local level. We must be smarter and more efficient as to how we deliver core essential government services while protecting as much as possible programs such as education and healthcare. This new agreement, which finally included House of Representatives input, is a step in the right direction. With strong bi-partisan passage of the pause in the income tax reduction I was given the opportunity to register my voice, as well as the voice of many constituents and businesses in the 90th district who said 'this is good, but we could do better.' There is a looming $700 million problem on the horizon for the state's budgets that will start to be negotiated in January. The more fiscal adjustments that can be made now, the fewer we will need to do this coming spring. It is disingenuous to say we have 'cut government to the bone' while forcing our local governments and universities to take a 5% reduction and while knowing that there will be additional cuts made in just a few weeks. Because of these reasons I voted 'No' on Senate Bill 852."

We all will have to hold our wallets tighter now that the republicans caved in on the tax increase. When will any of them understand that we do not now or ever want higher taxes. If necessary, cut everything down to nothing so that we can continue to afford to live in this state.