The Michigan legislature not long ago enacted the Michigan Business Tax [MBT] as a response to public pressure to end the Single Business Tax [SBT] (a gross receipts tax, taken before expenses). Trouble is, the MBT still remains a gross receipts tax - and Michigan is sinking - daily !
" Let's pay taxes when we SPEND our money, not when we EARN it ! "
Our goal is to do REPLACE the income tax system in Michigan. Concerned citizens in Michigan have been learning about a fairer, progressive consumption tax plan known as the Michigan FairTax. In order to give Michigan voters the power to choose, we are underway with a campaign to place the Michigan FairTax on the 2010 general election ballot.
The Michigan FairTax will both simplify, and stimulate, Michigan's business / jobs climate in a dramatic and ongoing basis. 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 that 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. 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.
Eliminating inefficiency. No more business income tax costs in consumer prices.
Under a FairTax system, points of collection will be dramatically reduced (from millions of individuals to 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.
Because service providers, under the current system, must account for income tax withholding and compliance costs, Michigan consumers pay a hidden tax in higher prices which will become visible under the MI FairTax. (The MI FairTax EXCLUDES business-to-business purchases as this would, again, hide the cost of taxation in prices.)
(We seldom email state-wide, generally notifying members nearby to events or initiatives.)
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Protects basic necessities. No more tax shelters for big spenders.
Because of the monthly "prebate" check (calculated as .0975 x $ [ poverty level per family size] ) to ALL Michigan-resident households, the MI FairTax rate would effectively be 0% on all monthly family spending up to the monthly poverty level, thereafter it's 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 reduce a family's effective tax rate.
What's more, interest earned on savings would no longer be taxed. Accumulating capital for desired goods is easier under FairTax. Further, "higher tax brackets" vanish under MI FairTax. So, go ahead. Work overtime! It's yours. The state only gets paid, when YOU DECIDE to go shopping!
Less credit, more savings!
Under MI FairTax, banks will rely less on credit card payments ("getting blood" from paychecks that are already compromised by income tax withholding) because with more disposable income, families will save more. Bankers will have greater deposits to loan - at lower interest rates - to a healthier economy of more businesses employing more people.
MI FairTax turns current debt-driven financial system (benefitting those who lend) to a savings-driven system (benefitting those who save).
" Act. Right now - ' light your candle ' ! "
Join our email list to learn how you can help advance the Michigan FairTax plan.
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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
Why the FairTax idea is right for America's working families.
Mike Gravel (D), "If the rich like the FairTax so much, why aren't they contributing to my campaign?"
Mike Huckabee (R), "Enacting the FairTax is the most important way to transform the economy."
Ron Paul (Libertarian R), "Though not a co-sponsor of FairTax bill, I'd vote for it."
I'm replying to the Fair Tax Agenda you have been pushing, not only to me, but many others on this ETF Social Network.
Looking at the writing on the wall. Many of the retired and elderly, do not have businesses, do not have income from working, but rather a pension and/or Social Security benefits. They, the retired and/or elderly would be taxed too much for the first time since retirement or leaving the field of work.
Fair Tax, taxes the retired and elderly too much. My opinion and I'm sticking to it.
I do not like the Fair Tax, not because of its name. However, I heard Vice President Joe "Plugz" Biden, talk about fairness. Fairness for whom? Furthermore, The words "progressive consumption tax" should be alarming to even the non-critics. The only true fair tax is NO TAX. Its gone on for long enough.
Also, not to astray from this topic, but I would like to make it real clear to you, the reason I joined End the Fed, I WANT TO END THE FED, to end SLAVERY over the people in this GREAT REPUBLIC the USA.
When I do defeat the FRB, I do not want another progressive tax policy, regardless of its perks, like for example.. your buying power would be increased. Buying power will be increased when the FRB is destroyed. With that, I yield back.
I think the so-called "fair tax" movement while well-intentioned is distracting attention from the real issue. It focuses on the TYPE of taxes rather than the AMOUNT of taxes and the bloated size and power of government at all levels.
British author C. Northcote Parkinson made the point in The Law and the Profits, the first order of business is to establish what is the maximum acceptable level of taxation as a percentage of personal income in a free society. THEN we can worry about the FORMS of taxation.
The simple fact is there is no way to humanely use the force and terror of the government to seize 30%, 40%, 60%, 90%, 120%, 140% of a person's income per year whether it is by an income tax, an excise tax, property tax, tariffs, inflation, various use fees, whatever. I don't care what the FORM is, a person having to pay those levels of taxes is a tax slave, a peon.
The first issue is, "Did the XVIth Ammendment reapeal the XIIIth Ammendment? If not, then at what level of taxation does a person become a tax slave?"
All taxes are regressive. Tax the poor, you tax the poor. Tax the rich and you tax away the capital that provides the poor with jobs and low-cost goods. Every government job is at least one, and more like three private sector jobs eliminated.
So to have those who wish real reform quibbling over the FORM of the taxes is just what the forces of hyper-government need to assure nothing significant ever really happens.
What is needed first is clear consitutional direction either by court decsion or Constitutional ammendment at all levels as to what is the maximum allowable level of taxation as a percent of personal income INCLUDING passed through corporate taxes.
Please, let's join together and focus on the fundamental issue first and quibble about form later.
At first glance the fairtax seems like a good idea. Certainly better than taxing wages or income. I would support it if it was a constitutional ammendment that also repealed the 16th. But what does this fair tax accomplish? Does it shrink government? No. It is just another NEW tax. And the worst part is it will make most Americans come to rely on that government check they get on a regular basis. What rights would they be willing to give up to keep that check coming? I wouldn't be surprised if David Rockefeller himself created the Fair Tax movement. The Fair Tax is another dip on the slippery slope to serfdom.
I do not agree with replacing the income tax with ANY tax....and to correct you, Dr. Paul has repeated that thought MANY times.
They create the money out of nothing, they do not need our taxes in ANY form. Return to sound money first, then worry about taxes for revenue after.
First thing is first. HONEST MONEY
Mr. Fisher, I am quite aware of the Fair Tax movement. My mom and her husband are very active in the 'grassroots' movement in NC and are even trying to put together a motorcycle ride in support of the fairtax.
A very beta version of that site can be found at http://www.grassrootsfreedomride.com
I myself am not very active in supporting the fairtax, but I am the president of the Michigan Affiliate of the Objectivist Party. If you are interested (or know anyone who is interested), the Objectivist party site is http://www.objectivistparty.us
We, the people of Michigan, are alarmed, and we have taken to the streets because of what we sense is the loss of proper respect and service by those we’ve sent to Lansing (and Washington) to represent US! However, unless our Michigan Tea Parties can channel energy into a vehicle of concrete action, the past century has shown us that we’re likely to continue to proceed down the path to less freedom, fewer liberties, less economic opportunity, more taxes, and larger… Continue