MI Residents - Say NO to New Taxes

From the Michigan Chamber of Commerce:

Repeal Job-Killing Service Tax!
By now you are likely aware that as part of the state budget solution the Governor has signed into law a major expansion of the use tax (companion to sales tax) to approximately 60 new services! The Michigan Chamber of Commerce is unalterably opposed to this $700 million tax increase on families and job providers.
The ONLY good news is that this legislation does not go into effect until December 1, 2007 which means there is still time to stop this extremely damaging proposal from becoming law. Chamber members need to act immediately by contacting the Governor, Speaker Dillon, Senate Majority Leader Mike Bishop, and your own respective Legislators and ask them to repeal this legislation. We encourage you to call, write, and email.
Furthermore, the Michigan Chamber of Commerce is currently exploring all options about how to repeal, overturn, undo this legislation including but not limited to:
1) Pursue Legislation to repeal this plan prior to December 1.

2) Pursue a Statutory Initiative to repeal this statute. This would require 304,101 signatures gathered to place repeal language before the Legislature. If the Legislature were to approve it -no Gubernatorial signature would be required. If they did not, it would go to the voters at the next General Election on November 4, 2008.

3) Pursue a Constitutional Amendment to prohibit sales/use taxes on the purchase of all services. This would require 380,126 signatures to place the Amendment on the November 4, 2008 ballot.
Below is an email message you can send/edit immediately. In addition, please continue to check the Michigan Chamber's website for updated information on this issue.

Suggested Letter for business owners:

As a Michigan job provider, I urge you to reconsider the passage of the new service tax.

This is a major tax increase on working families and job providers at a time when Michigan is struggling, and will be very damaging to our state’s economy. Furthermore, taxing services is much easier to talk about than it will be to implement.

This ill-conceived proposal will be extremely complicated to define properly and understand; it introduces a whole new level of complexity to business operations in Michigan and will significantly drive up the cost of doing business in Michigan.

Furthermore, proponents have attempted to paint this proposal as taxing just “luxury” services! Not only does that attempt to diminish the role that every job provider contributes to Michigan’s economy, but it is simply false. Some of the services that will now cost more provide families protection, help root out crime, help protect the environment, transport individuals who cannot otherwise afford a car, and more.

In total, this proposal will just make it harder for Michigan job providers to be competitive and is the wrong approach to resolving Michigan’s budget issues. We urge you to focus on spending reductions and meaningful cost-saving reform measures instead. Please say no to this tax increase and work to repeal it!