Monday, October 01, 2007

You Watch - It Will Come Down To A Higher Sales Tax

So, the State of Michigan is collecting $750 million in new taxes on people like palm readers and wedding planners.

You watch - this will all be put aside to jack up the sales tax. By Michigan Constitution, a sales tax hike must be approved by the voters.

Here is the scenario I envision - the Dems will come back in a week or two and offer to get rid of the new service tax, if voters will up the sales tax by 1 to 3%. Voters will get their chance to say "yes" or "no" in January 2008.

Of course, voters simply choose between a mousetrap and rat poison - either option stinks. They'll chose to approve the sales tax. Then, in January 2009 (after the November '08 elections), the Legislature will back stab the voters and re-instate the service tax - at a new, higher rate to match the new sales tax rate.