Every year, you can be sure of a few things in tax policy. The number of lines on the 1040 will be greater than last year due to some new taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. provision enacted by Congress. Cigarette taxes will be raised in some state for the mere purpose of political expediency. Some state will contemplate elimination of its property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. . And the state of Michigan will consider raising taxes. Today, the state legislature is meeting to consider raising the state sales tax and the state income tax.
An excerpt from the Detroit Free Press:
The state House is expected to vote today on a plan to avert a projected $1.75-billion deficit. The new fiscal year begins Oct. 1, so the Legislature is running out of time to agree on a budget and avoid a state government shutdown.
QUESTION: Why has it taken so long?
ANSWER: Fear, mainly. The options for lawmakers aren’t pretty — either raise taxes and face voter ire and possible recall campaigns from antitax groups, or enact deep cuts.
But at least the state has good football teams. Oh wait…
(Look at the bright side. At the end of the year, at least the university can use the additional tax revenue to maybe find a high-dollar replacement for Lloyd Carr.)
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