They Raise Taxes on the Poor While Businesses Benefit

November 16, 2011:

"LANSING — Michigan is among just a handful of states raising taxes on low-income working families while cutting taxes for other groups, the Center for Budget and Policy Priorities said in a report released Tuesday."

http://www.mininggazette.com/page/c...tes-raising-poor-s-taxes.html?isap=1&nav=5014

This story ran everywhere, so if you want type in "Michigan among states raising poor's taxes" and you'll find it on Yahoo, Business Week, etc. ...whatever site you like most likely.

That the poor have to take a hit whenever a Republican is elected isn't unknown by me... it's happened every time. It's the major reason I've never voted Republican.

 

If I had a magic wand, I would take all the stuff like the Earned Income Credits out of the tax code and put it into specific programs for benefit of specific, defined sets of people needing and qualifying for assistance. If you do some research on he EIC, you will find it is another shotgun approach to trying to help the poor that is far from efficient. A number of people who qualify (and probably need it) don't end up filing for it and I know at least one person who has qualified for it at times in the past and didn't particularly need it.

Problem is that I suspect that money in Michigan will not end up in safety net programs.

 

It's called cost shifting. In this case from those who can most afford it to those that can least afford it. Nice!

 

Actually the majority of people who receive EIC receive a credit greater than their actual income tax liability. So technically this isn't an increase of taxes on the poor - it is more along the lines of a reduction in benefits.

 

Any way you call it, it's a hit to the poor.

 

The point is that it is a dishonest statement. The State of Michigan did not raise taxes on the poor. Raising taxes gives the illusion that those affected will have to pay more of the money they actually earned to the state and that just isn't the case. The biggest majority will still receive an EIC greater than their actual tax liability and will not have to pay any money (taxes) at all to the state. They'll still receive a full refund of the taxes withheld from their paychecks.

 

Either you are wrong about the EIC or the Daily Tribune is wrong.

The changes eliminate the state’s hated Michigan Business Tax, replacing it with a flat tax on corporate profits. However, it also eliminates tax exemptions on pensions and the state’s earned income tax credit for the poor, sparking the criticisms
http://www.dailytribune.com/articles/2011/05/25/news/doc4ddd9c2834061011269869.txt

 

Where are you getting that idea from? If I was Sean Connery (as James Bond) I'd slap you and say "Who ish-yawr shource!" But I'm not so where are you getting your info from?

 

Can I guess? Can I guess? A non-fact checked Right-wing media outlet? What do I win, what do I win?????