Jan 28, 2009

Senate Republicans again put politics above good policy

LANSING -- Michigan Legislative Republicans continue to put politics and grabbing power above the economic health of the state, and the decision by Senate Republicans to blow a $166.1 million hole in the general fund budget is just one more example.

On Wednesday, Senate Republicans moved Senate Bill 1 that will phase out the Michigan Business Tax surcharge to the third reading, and they plan on voting on the bill Thursday. If approved - and it most likely will because Republicans control the Senate - it will phase the surcharge out over three years, and according to the Senate Fiscal Agency the bill would cut revenues $593.4 million in the third year. All with no replacement in sight.

Just like the Republican’s decision in the summer of 2006 during the election to eliminate the Single Business Tax (SBT) without a replacement, the Senate Republicans plan to eliminate the surcharge with no replacement and leave it to the Democrats to be the adults and figure out a solution to the Senate Republicans irresponsible decision.

Senate Democrats say they want to repel the surcharge, but that it should not be done in a hasty fashion. Making major changes to the tax code requires reflection.

Considering most of the Republican Caucus is running for a statewide office, this is just another campaign ploy to make them look good. Mike Bishop and Tom George are running for Governor, Bruce Patterson and Bishop are considering runs at Attorney General and Michelle McManus and Cameron Brown are running for Secretary of State.

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