The Tax Timebomb That Explodes In Michigan In 2012 Is Much Worse Than You Thought

[David1946]

The tax timebomb that explodes in Michigan in 2012 is MUCH worse than you thought

 

http://www.dailykos.com/story/2012/02/03/1061344/-The-tax-timebomb-that-explodes-in-Michigan-in-2012-is-MUCH-worse-than-you-thought?via=siderecent

 

 

The GOP finally finds a good tax: on the poor

 

As bad as things are right now in Michigan, they are about to get so much worse that I fear there is a genuine risk of the types of riots we haven't seen since the 60s & 70s in my state. If you think we have too many failing schools and too many failing cities now, if you think the disenfranchisement of our citizens through the imposition of Emergency Managers was at a shocking level in 2011, wait until you take a peek at what's to come in 2012.

 

This is corporatocracy and war on the 99% writ large and writ bold.

 

Joanne Bump, a senior policy analyst with the Michigan League for Human Services has a terrifying new report out titled "Tax Changes Hit Low-Income Families the Hardest". The report is HERE (pdf) with an Executive Summary HERE (pdf). I spent some quality time with this report and what I read was both compelling and terrifying. It's an easy read and I highly commend your attention to it.

 

First of all, as we all know, last year the Michigan Republicans passed a budget that lowers business taxes by $1.6 billion and increases individual income taxes by $1.4 billion.

 

It looks like this:

 

 

What is shocking is how easy the budget goes on upper income Michiganders and how astonishingly HARD it hits lower income residents. Take a look at the average tax increase broken down by income group:

 

 

In fact, when you look at the total state and local taxes as a percentage of income of those making $334,000 or more per year vs. those making $17,000 year or less, the poorest people pay 1000 times more than those at the top of the food chain. The poorest Michiganders pay 1.0% of their income vs. 0.001% for the top earners.

 

 

 

Other things from the report that you should know about the tax time bomb that explodes in Michigan in 2012:

 

• Despite continuous Republican screeching about "simplifying the tax code", this new budget decidedly does NOT make it less complicated.
• Reduces the Earned Income Tax Credit (EITC) for the working poor from 20% to 6% of the federal credit - a 70% cut.
• Lowest 20% of income earners pay 9.1% of income in state & local taxes, top 1% pay only 5.6%.
• All major tax credits except the Homestead Property Tax Credit are now gone. Donations to food banks, shelters, and food kitchens: gone. Donations to charities: gone.
• Taxes are instituted or increased on private and public pensions for certain groups of senior citizens/retirees.
• Deduction for children in the family has been eliminated.
• Homestead Property Tax Credit (HPTC) has been taken away for over a quarter million Michiganders with incomes between $50,000 and $82,650. Seniors with incomes between $30,000 & $50,000 will have this credit reduced by 40%. Only half of the working poor that qualify for the EITC will also qualify for the HPTC.

At the end of the day, here's a very important thing to remember: Thanks to the new Republican budget, 51% of all Michigan tax payer will pay MORE in personal income taxes in 2012 and beyond. Read that again. Over HALF of Michiganders will pay MORE TAXES because of the Republican budget. This is not Democrats. This is not even the Republicans of yesterday. This is, in fact, a mostly tea party-driven legislature who came in on a small government, less taxes bandwagon, tooting horns and banging tambourines.

 

And they just raised taxes on over half of our residents. Oh, yeah, and that whole smaller government thing? Republicans passed an unprecedented 323 laws in Michigan last year. Think about that.

 

One more thing: the reason they give for this sweeping change is that it will stimulate new business growth in our state. But let's face it, that growth and that economic improvement is not meant for our poorest cities. No business looking to set up shop in Michigan is going to put their business in a city that has a failing government, crumbling infrastructure, poor amenities and underfunded, bankrupt schools. They aren't. It's obvious. They will go directly to the newer, more upscale suburban areas to do business.

 

In other words, the economic growth that this new tax paradigm is supposed to solve Michigan's problems will do nothing of the sort. Places like Flint and Pontiac and Detroit and Benton Harbor and Ecorse and Highland Park will NOT see the boom that Republicans believe is coming; they will NOT participate in any meaningful way in our impending economic recovery should it ever arrive, not any time soon. These cities will continue to struggle and fail because we have done nothing to invest in their futures. We have done nothing to make them attractive to businesses or to anyone that might wish to relocate.

 

And, don't forget: at the same time Michigan Republicans did all this to our tax codes, they stripped a billion dollars out of our statewide school system. Most of the impacts of that have yet to hit so if you think the imposition of Emergency Managers in our school systems is out of control NOW, wait until next fall. If you are a union member that works for a school district, you are seriously at risk of losing anything resembling a decent wage once the anti-union Republicans are done with you this year.

 

If you think that things were bad for the poor in 2011 in Michigan, you ain't seen nuthin' yet. 2012 is where bunny muffin gets real.

 

 

[AmishRnot4ganja]

And people keep voting these bass turds (REPUBLICANS) into office. What I don't understand is "Why?". People are cutting their own throats for some reason that at this time is not clear. Why do people put these a-holes in charge? I do not understand. Someone please enlighten me.

[TheBeagle]

Ron paul all the way

[Timmahh]

its a loaded gun. Both want to strip you of your hard work, for their high immoral pleas of class warfare.....

[greenbuddha]

The therory is; let those in the upper tax brackets get a tax cut, since they SUPPOSEDLY create jobs by using those tax breaks to invest in companies that will produce work, and then the 'lower income' people 'pay the taxes' on the incomes 'they' make.

 

The problem with the theory is, that those in 'upper' tax brackets that are getting the 'tax breaks' are NOT creating jobs.

 

They (upper tax bracket people) are investing their 'tax savings' in countries outside the U.S.A., because they get a bigger return on their money.

 

It's the same old story; the rich get richer and the poor get poorer.

 

And the BIGGER problem is, our own government is backing these inane and ridiculous concepts, and has even used our tax money to BAIL OUT the high tax bracket guys (2007 market crash and housing feasco).

 

Rediculous!

 

And no, I'm not a socialist... I just firmly believe in an open and transparent government and economic system. One that isn't rigged for those that can buy influence and votes.

[newbie313]

Both sides of the aisle are robbing us.blind

[Frank R]

Poor people need to get better lobbyists.

 

Its almost like the poor aren't even trying to influence the tax code to benifit folks living at or below the poverty line.

 

If the poor keep operating in this manner they are going to be bought out and liquidated.

 

I'll bet you $10,000 the poor are intentionally worsening their own situation just so they can keep soaking up that sweet, sweet Social Safety Net gravy.....

[+Annnie]

And people keep voting these bass turds (REPUBLICANS) into office. What I don't understand is "Why?". People are cutting their own throats for some reason that at this time is not clear. Why do people put these a-holes in charge? I do not understand. Someone please enlighten me.

They lie.. and ppl want to believe..

[2d]

Ron paul all the way

 

Here's the scoop on the Paul poop.

 

>>American Third Position Hacked and Destroyed; Private Emails Expose Blatant Racism and Ties to Ron Paul

 

Fellow anons: we are pleased to bring you the dismantling of a major US-based white supremacist network known as the "American Third Position"(A3P). These racist losers have chapters across the US, operate several white power websites, forums and online stores, and are even running a candidate in the 2012 elections. Although they try hard to maintain a professional public image to camouflage their vile racism, we're now airing all their dirty laundry all over the Internet. Contained in this major dump are several thousand private forum messages, personal emails, internal organization notes, names, phone numbers, home addresses and other information on all of their members and supporters. It’s time for these cowardly suit and tie white supremacists to sleep with one eye open. Scared much?

 

In addition to finding the usual racist rants and interactions with other white power groups, we also found a disturbingly high amount of members who are also involved in campaigning for Ron Paul. According to these messages, Ron Paul has regularly met with many A3P members, even engaging in conference calls with their board of directors. Ron Paul's racist politics and affiliations are already well known, being viciously anti-immigrant, anti-abortion and against gay marriage -- not to mention having authored the racist "Ron Paul Papers" and receiving financial support from other white power groups (pictured with Don Black from stormfront.org). Hard to believe Ron Paul draws some support from the left and the occupation movements, especially now that it is confirmed Ron Paul hangs out with straight up racist hate groups.

 

We put extra effort in ruining the life of A3P webmaster Jamie Kelso. On top of being on the board of directors of A3P, former $cientologist, and high ranking Ron Paul organizer, he also is the account owner of german nazi forums and store nsl-forum.org, rhs-versand.com. We went ahead and wiped those websites off the internet as well, dumping private messages and order information. Aside from us releasing his information such as his social security number, address, resume and private discussions, we also heard some folks went on a joyride with Kelso's credit card and made some lulzy purchases, including sex toy purchases and making donations to the Anti Defamation League and many others. Oops.

 

We call upon not only other antifascists but all those opposed to white supremacy to utilize this information and make hell for these white nationalist scumbags. It is essential if we wish to live in a world free from oppression to expose and confront racists at their jobs, their schools, at their homes and in the streets.

 

No Dialogue! No sympathy! Destroy White Supremacy!

<<

http://pirasec.com/

[cristinew]

ANONYMOUS LOL

[theNeptune]

And people keep voting these bass turds (REPUBLICANS) into office. What I don't understand is "Why?". People are cutting their own throats for some reason that at this time is not clear. Why do people put these a-holes in charge? I do not understand. Someone please enlighten me.

 

We only get to pick from the Butt Wads they allow us to choose from and then as soon as elected the one we thought was a lesser wad show their true colors and dumps on all but the rich.

[cristinew]

http://www.dailypaul.com/196140/darn-it-dont-ask-bout-my-racist-writings this is good

[cristinew]

the race card is the lowest they can go they are scared of Dr Paul ,, he may be old, but he has some very wise ideas. free the blacks from the drug war prisons, great idea, no nonviolent person should be in prison, .. if a person steels your lawn mower the should pay you back twice the amount not lock them up for 3 years and never pay you back,,

[greenbuddha]

Poor people need to get better lobbyists.

 

Its almost like the poor aren't even trying to influence the tax code to benifit folks living at or below the poverty line.

 

If the poor keep operating in this manner they are going to be bought out and liquidated.

 

I'll bet you $10,000 the poor are intentionally worsening their own situation just so they can keep soaking up that sweet, sweet Social Safety Net gravy.....

 

 

No. They will keep the poor around to buy the little 'day-glow' trinkets and widgets that keep the 'big money' guys and gals in the dough.

 

And besides, if they totally get rid of the poor, who will clean their crappers and their offices?

 

'Soylent Green' anyone?

[cristinew]

What about Obama attending the RACIST Jeremiah A. Wright, Church in chicago ? is that ok,

What about the Mormon Church not letting blacks be preachers until 1978 is that OK ?

bring out the race card here is it,

 

(LDS Church) had a policy against ordaining black men of African descent to the priesthood.

 

Under the pre-1978 policy, black men of African descent could not hold the priesthood in this way, and were also prohibited from participating in the temple Endowment