Michigan is facing a 1.4 billion dollar budget shortfall.
To fix that shortfall, Michigan's Governor Rick Snyder is going to DECREASE taxes for large businesses to add another 1 billion dollars to Michigan's deficit, creating a $2.4 billion dollar budget shortfall.
To plug that extra billion dollar shortfall Rick Snyder is going to start taxing seniors and retirees on their pensions, to raise $800,000,000...bringing Michigan not quite back to where it started, now with a 1.6 billion dollar shortfall.
To sum up:
Snyder is giving tax cuts for large businesses ---> Using money from retirees.
Now here's something interesting...Snyder's proposed flat 6% tax on businesses is a tax CUT for most very large businesses.
But it's a tax INCREASE for many very SMALL, mom and pop businesses or start ups.
Rick Snyder's 6% flat tax is a tax INCREASE for very small businesses. And not only is it a tax increase...it's a tax increase that blows a 1 billion dollar hole into Michigan's budget.
Rick Snyder's 6% tax INCREASE on mom and pop businesses in Michigan isn't even raising revenue. It's DECREASING revenue....which as I mentioned is being plugged by taxing pensions from retirees.
See...under the current "Michigan Business Tax" which Republicans love to hate, a business making under $250,000 does not pay corporate tax. Under the current tax code, very small businesses are given time to grow and take root and start generating revenue for the state in the form of SALES TAX, and start CREATING JOBS, and when or if they get larger, then they start paying more in taxes.
Under Snyder's plan...the mom and pop businesses who have been raising and collecting tens of thousands of dollars in sales tax per year and creating jobs will see a tax INCREASE of 6% which goes directly to fund a tax CUT for the larger businesses.
Taxing middle class retirees and mom and pop businesses MORE --> to fund tax cuts for mega corporations.
And this all happens BEFORE we even start to address the original budget shortfall.