A risk worth taking?

I just got done reading my man Shrek's post about election time and saw his blurb about the Single Business tax here in Michigan. While he is completely right to be worried about where this money comes from, I have to wonder if the trade off might be worth it down the line.

Many businesses see this tax as oppressive and anti-growth. Many also attribute Michigan's inability to score new business to this tax. This may or may not be true, but the perception is real. You also have the fact that as far as creating new jobs goes, Michigan just sucks. Think of the potential boon for the state if businesses knew this is a place they can come and have no business tax burden. Think of the money that would be freed up for capital investments and job creation. I personally think that would be a job magnet.

Businesses don't pay taxes, people do.

Shrek...search your feelings, you know it to be true. If I open up a shop that sells cool ass buttons for $5 and it blows up to become a big time business I would then get hit with the SBT. Do you think that I am just going to grin and take that hit to my bottom line? No. I start selling buttons for $5.25. Business is just the conduit that the common man's hard earned money goes to the states(and the federal). Studies have shown that 22% of the price of goods in America(not just Michigan) goes towards business paying all the different taxes they have. Who knows how much of that 22% is going to the state, but the fact remains that business taxes get paid by us.

Quarter of the General Fund

I agree that the initial loss of tax revenue will probably be a big deal. Change is hard, but considering the dismal track record that Michigan has right now in creating jobs and attracting business, it might be necessary. One positive that could come out of this is that our legislators may be forced to show fiscal restraint. I know it is hard already, but things only get better when you make right decisions, not easy ones. Maybe they can raise the sales tax .5%-1%. As a taxpayer I would eat that if I knew the elimination of the SBT was bringing new jobs and a better financial future to the state. Raise the gas tax 1%...maybe not. The point is that there are ways to work with this. Let's hope this canceling of the SBT has the intended effect, and that Michigan can start to turn around again.

Don't forget...anything a legislature can do, they can undo. I can't see things getting much worse than they already are.