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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Candidates for Governor Debate AND The MI FairTax


    By JGillman, Section News
    Posted on Thu May 06, 2010 at 08:18:13 AM EST
    Tags: MIFairTax, Michigan, Governor, candidates, Debate, Forum (all tags)

    I have been a supporter of the Michigan Fair Tax for some time.  Personally, I think it may need a tweak to consider the difficulty of service tax collection, but is the type of structure we need to look at.

    Roger Buchholtz of the MIFairtax provided the following report, and AFP has graciously provided the forum and video of our three best candidates:

    Mike Bouchard, Mike Cox and Pete Hoekstra debated before a crowd of over 1,500 people that attended an Americans For Prosperity (AFP) Summit in Clarkston last Saturday.  The debate was polite but at times spirited as moderator Phil Kerpen, VP of Policy at AFP asked the candidates a wide range of questions in the 90 minute debate.

    When the candidates were asked their position on the MI FairTax all candidates spoke favorably of the proposal.  The MI FairTax is a 9.75% retail sales tax that would replace the current 6% sales tax, 4.35% Michigan personal income tax and most business taxes.

    Because businesses pass the costs of business taxes and tax compliance on to consumers in the form of higher prices, the MI FairTax removes these costs from the prices and allows citizens to see their true tax burden.  The resulting lower costs of Michigan made products will make Michigan labor and business more competitive.

    Rather than exempting certain necessities from taxation it provides for a monthly payment to every legal household in Michigan in the amount of what the tax would be on expenditures up to the poverty level.  This payment offsets the taxes up to the poverty level for all households.  This causes the effective tax rate to be progressive (to increase as spending increases), similar to how the personal exemption causes the current flat state income tax to be progressive.

    The MI FairTax will tax us when we consume rather than when we are being productive.  Economists generally conclude that consumption taxes are the least harmful to an economy, whereas, taxes on income and business activity are the most harmful to the economy, slowing growth and lowering real wages.

    When asked their position on the MI FairTax the candidates said:

       * Mike Bouchard - "I believe [in] the Fair - flat [tax]... anything that will make us competitive.  If it makes us the #1 state in America then I am on board..."
       * Mike Cox - "I believe any consumption tax is obviously a much better way to go."
       * Pete Hoekstra - "The MI FairTax is an exciting proposal, but doesn't go far enough.  You take a look at the taxes that we're burdening our businesses with: The Michigan Business Tax (MBT)... the FairTax eliminates it; the Personal Property Tax (the tax on equipment in your factory)... the FairTax eliminates it; the non homestead property tax... the FairTax does not eliminate this tax and [this tax] hammers tourism...  I am working with [the MI FairTax Association] to address the non homestead tax.  The MI FairTax is heading in exactly the right direction, easy to collect, transparent, saves on compliance, and doesn't penalize saving and investment...  Ultimately [the people] will have the right to vote on it."  

    The candidates' comments were enthusiastically received by the audience.  A video of the debate can be viewed at http://afptv.blip.tv/.   Information on the MI FairTax is available at www.mifairtax.org.

    < How to encourage racism. | PA 312 Still Cripples Management Of Municipalities. >


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    Candidates for Governor Debate AND The MI FairTax | 10 comments (10 topical, 0 hidden)
    Problem with the FairTax. (none / 0) (#1)
    by KG One on Thu May 06, 2010 at 11:53:43 AM EST
    I see that the FairTax supporters have still not addressed this one big nagging problem.

    Rather than exempting certain necessities from taxation it provides for a monthly payment to every legal household in Michigan in the amount of what the tax would be on expenditures up to the poverty level.  

    So not only do we continue having the same problem that we have on the national level with people paying nothing into the system but getting something back, but we will need to create a new bureaucracy to cut welfare checks to everyone in Michigan.

    People not paying into the system is part of the problem we have with entitlements. And if you want to see how well that will work out in the near future with more and more people on the public dole, I direct your attention over to across the pond.

    Beck did a program several weeks back with Dr. Art Laffler, former Reagan economic adviser, that addressed the taxation problem on the national level. The problem in a nutshell isn't a lack of taxes, but a lack of revenue. To address this problem, his solution would be to have a flat tax for business and individuals that encompasses everything.

    BECK: So what could we -- I'm getting a wrap sign. What could we get a flat tax down to and actually survive, that would be something shocking to the rest of the world to spit us out of this?

    LAFFER: Eleven percent on business net sales and 11 percent on personal unadjusted gross income and we would match the total revenues we collect today with no Laffer Curve at that, Glenn. We would match the total revenue...

    BECK: Where does that start?

    LAFFER: That starts at zero.

    (CROSSTALK)

    Yes. Everyone pays 11 percent across the board.

    BECK: That's FICA. That's everything.

    LAFFER:     Everything.

    BECK: That covers everything.

    LAFFER: Capital gains, estate tax, FICA, Medicare, Medicaid and...

    BECK: One tax?

    LAFFER: One tax.

    BECK: What did you make this year? What did you make this year? Deduct 11 percent.

    LAFFER: That's it. And then, businesses do the same 11 percent on their value-added. So you have the two 11 percenters. And you can match all the -- Jerry Brown ran on this as a presidential candidate in 1992 and almost took Clinton out.

    He ran -- the Democrats love this one -- Jerry Brown. Now, his number was 13 percent because he wanted to have a little bit of a surplus to pay off the debt.

    .....

    We're supposed to live under a system of equal justice for all. I can't see why taxation should be a good place to start?

    To bad (none / 0) (#5)
    by LookingforReagan on Thu May 06, 2010 at 01:57:38 PM EST
    Nobody ask about Right to Work. Couple the fair tax with a state wide Right to Work law and Michigan will recover by leaps and bounds. Of course the Czarina and any Liberal Progressive candidate that seeks to occupy her office once she leaves will never agree to such an anti-organized labor law. Actually it is pro-labor as it actually gives workers a real choice. The only hope we have of righting the ship is to make this a business freindly state that will work with businesses to create jobs that our decimated population can then fill. We have tried it the Neo-Commies way for nearly 8 years and it has been an unmitigage disaster. Now it is time to hire some grownups and let them do what needs to be done based in reality and common sense.
    I for one, will not support any candidate that will not support Right to Work. Hopefully that question will be ask at the next debate. I would truly like to know what they all believe and where they stand on that issue.

    tough sell (none / 0) (#8)
    by Tom McMillin on Thu May 06, 2010 at 05:17:53 PM EST
    it is a very tough sell -- Schauer used it to defeat Walberg, saying he voted to increase taxes (by supporting FairTax).

    Pete Hoekstra Wins Another Debate (none / 0) (#10)
    by dnlchisholm on Mon May 10, 2010 at 10:45:40 PM EST
    Pete has been very good a far this campaign in not relying on sound bytes.  He has consistently given the most detailed responses to questions.

    Candidates for Governor Debate AND The MI FairTax | 10 comments (10 topical, 0 hidden)
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