Ax the Tax Coalition Oct. 16, 2007 Sample Letters to the Editor The more I read about this new sales tax on services, the more I’m convinced that Lansing messed up again. They never seem to learn their lesson. They wait to the very last minute, and they do a backroom deal in the middle of the night, nobody’s actually read the bill they’re voting on, then they act surprised when it turns out to be a disaster. And from what I’m hearing from friends who own businesses, this new tax is a HUGE disaster. ----I looked down the list of services that fall under the new state sales tax on services. The politicians told us that this was going to be a list of “luxury” services, whatever that is. But what’s on the list? A whole bunch of services people and businesses use all the time that are far from luxuries. Why can’t the politicians ever just be straight with us? Why always the bait and switch? ----They say that when you tax something you get less of it, and when you subsidize something you get more of it. Well guess what they taxed on the new state service tax: business start-up services! Maybe I missed something, but I thought we wanted MORE businesses to start up in Michigan? ----I own a small business. It’s a tough time to run a business in Michigan. I’m fighting every day to keep afloat. Now along comes Lansing and its new tax on services and I’m pretty much going down for the third time. First of all, the tax is a complicated mess that I’m going to have to spend thousands of dollars in accounting fees to even figure out. Then there’s the sales tax I’m going to have to pay on the many services I have to buy. Then there are the taxes on going to have to charge my customers – taxes my competitors in other states don’t have charge. How does Lansing expect me to keep the doors of this business open? ----Governor Granholm and the state legislature are levying a new state sales tax on hundreds of services that individuals and businesses use all the time. Guess what service they left off the list. That’s right: lobbying. Big surprise. We pay through the nose, but the special interests that contribute to their campaigns don’t. ----- 1 I’m completely frustrated by Lansing’s plan to tax services. Michigan is in a single state recession. We’re facing record home foreclosures. We’re seeing unprecedented job losses. And now the politicians want us all to open up our pocketbooks and pay a tax on something that wasn’t taxed yesterday? It’s time that Michigan’s political leaders step up to the plate and find real meaningful solutions. Band-Aids, quick fixes and higher taxes aren’t the answer. Expanding the sales tax on entirely new areas of the economy is a bad idea. -----Is anyone in Lansing reading the newspaper or watching TV? Have they not heard Michigan’s economy is going down the drain? The new plan to expand the sales tax on services WILL NOT help get Michigan back on track. It’s a bad idea in light of the problems we’re facing. It will only make the cost of doing business, more expensive. Employers just won’t take it anymore. They’ll take their companies and their jobs and leave the state. -----Let me see if I can get this straight. There’s a new tax on skiing but not golfing? There’s a new tax on manicures but not haircuts? There’s a new tax on landscaping but not lawn mowing? Only the politicians in Lansing could come up with a new tax plan that is confusing, foolish and sticks it to the people of Michigan all at the same time. Michigan is facing dire straights. No one denies that but a hodge-podge tax plan only compounds the problem. It’s time for a plan that gets Michigan back to work. -----Michigan’s small businesses can and will jumpstart our economic engine. But they can’t do it if our elected officials insist on the new plan to tax services. We need tax policies that alleviate the strain small businesses are facing. Instead, this plan only hampers growth. It will be more expensive for businesses to do business but also make it more expensive on consumers. Lansing needs to go back to the drawing board or risk permanently decimating small businesses. -----Times are tough. Michigan families have been tightening their belts. It’s time for politicians in Lansing to do the same. The new tax on services could be a devastating blow not only to our pocketbooks but our economy. Reduce spending. Don’t raise taxes. ------ 2 After weeks of late night, marathon sessions in Lansing, the Michigan Legislature and Governor Granholm delivered the most crippling public policy this state has seen in a long time. At a time when the states job providers are struggling to keep their doors open and make payroll, they are handed the shaft in the form of a new expanded sales tax on services. While lawmakers want us to believe it affects only a few, this new multi-million dollar tax covers the many services we use from photo copying to hair salons to financial planning. It is a bad plan that needs to be scrapped. ----The new sales tax on services is a bad idea dreamed up in the midnight hour by our Lansing elected officials who were obviously too exhausted to think straight. How else do you explain handing another blow to our crippling economy. Now that the group has had a chance to catch up on their sleep, they need to move immediately to repeal this thing. ----If it didn’t work in Florida and it didn’t work in Massachusetts, why do our elected officials think a sales tax on services is going to work in Michigan? In those other states, they put a sales tax on services and then repealed it so fast the tax bills barely made it in the mail. Michigan had a chance to learn from those experiences in not doing this new tax and Lansing blew it. Now, Lansing has a second chance to learn the lesson and repeal the sales tax on services before it costs us more jobs in our state. ----We hear a lot about how Lansing is suffering from a lack of experience because of term limits. Well, our lawmakers have a chance now to learn an important lesson: if you make a mess, clean it up. This new sales tax on services is going to kill jobs in this state. For many businesses that have struggled already, this is the final nail in the coffin (oh yeah, hearse services are now taxed). The tax is a mess and Lansing needs to clean it up, before it goes into effect in December. Learn your lesson lawmakers and clean up this mess. ----I’m a small business owner in Michigan, and let me tell you, there are fewer and fewer of us everyday. Now, Lansing is passing a new sales tax on services that both me and my customers are going to have to pay. Problem is I can’t get a straight answer from Lansing about what services are taxed, which aren’t, when I might know and how much I’m going to have to pay. What a great way to run a business. 3 My guess, I’m not going to know how this really is suppose to work until an auditor shows up at my door. What a terrible way to run a state. ----I can’t believe the Michigan Legislature passed an expanded sales tax to services. We are in a “one state” recession and this is only going to make things worse. Why will businesses want to stay here..or move here? This is a jobs killing tax and should be repealed as soon as possible. The only jobs we are growing are in the sales sector and the Governor has the audacity to try to kill them. ----As a small business owner, I am shocked and disappointed with the terrible new sales tax on business services. Our state is clearly in economic decline and this new tax by the Governor will not help. In small business we have to be as efficient as we can in obtaining the necessary services. I am the human resources director, the operations manager, and the facilities director. However, I contract out with other small businesses to get the expertise and services I need for my business. This terrible tax will effect how we do everything. I am not sure how I will be to continue to afford many services essential to my business. One thing I am sure ….I know Indiana and Ohio don’t have these taxes. ----I want to express my sincere disappointment of the Michigan Legislature and Governor Granholm. Is anyone looking out for the future of Michigan’s economy? Michigan is hemorrhaging jobs, unemployment is at its highest, the housing market is in crisis, and now our “so called leadership” in Lansing has passed a tax increase on the business community. A new sales tax on service? How does this attract companies to Michigan? This needs to be fixed before Michigan becomes a wasteland. The State Legislature led a poorly planned and economically devastating "solution" to the state's budget problem. The Legislature should repeal this flawed tax, and if the legislature won't, it should come before the voters. ----I hear there is a new sales tax on services. The Michigan Legislature passed a sales tax on services almost literally as the clock struck midnight and as Michigan taxpayers slept. 4 No hearings, no review, no input and clearly no clue as to how this new tax would damage the state. Leadership at its finest. Michigan’s economy is in crisis and the Legislature taxes the business community. This was clearly a mistake and it needs to be addressed. Michigan cannot afford to loose any more jobs. The goal should be to attract companies to Michigan not give incentives for companies housed in here to relocate. I urge the Michigan Legislature to appeal this flawed tax. ----The Michigan Legislature made a big mistake when they passed this new sales tax on services. The only thing this benefits is government. The Michigan Legislature gets to balance the budget and return to business as usual. And the business community will pick up the tab so our leaders in Lansing can save face. Poorly implemented plans like this hurt everyone though. Businesses will relocate to other states and cut jobs. Michigan residents will loose their jobs or be force to move with the company, if they can sell their house. The Michigan Legislature need to repeal the new sales tax on services and enact more sound policy that helps Michigan’s economy get back on track. ----As a business owner, I am shocked by the Michigan Legislature’s decision to create a new sales tax on services. Our leaders in Lansing were literally asleep at the wheel during these budget agreements. There are so many businesses in Michigan struggling to keep the doors open. Every year businesses tighten their budgets to cut costs and keep hard working employees on the payroll. When is the Michigan Legislature going to tighten its budget? The legislature is happy to make tough decisions when someone else is picking up the tab. The Michigan Legislature needs to repeal the new sales tax on services. Michigan businesses can’t afford it and Michigan’s voters deserve better. ----I am a small business owner in Michigan. With the Legislature running the taxes up and up, my business is getting smaller and smaller by the day. I have been following the Michigan legislatures last ditch effort to salvage the budget. I’m very disappointed to see that the real backbone of this state, Michigan’s small businesses, were completely thrown to the wolves with this new sales tax. Why are you trying to make it harder to earn a living here?? 5 ----I own a landscaping business here in Michigan. I can tell you that the legislatures “fix” has not done me any favors. The spiraling economy here in Michigan has already brought my business to a close halt. This new sales tax will not give anyone an incentive to spend their hard earned money on landscaping. I’m sure it was easy to pick specific “services” professions out of a hat and assign them with a new tax, but you have targeted the working class, small business owners. You have targeted me. Simply said…my business cannot afford your new tax. ----The Michigan legislature has been hired to do a job. They are supposed to be our elected voice, making decisions in the best interest of the taxpayers who elected them. In the miserable condition our economy is in, how is it possible that a new tax on services was the answer to fix Michigan’s budget problems? It wasn’t the best answer – it was the easy answer. Business owners are being chased out of this state one by one. The last thing we should be doing is slapping them with a new services tax, making it even harder to keep their doors open. The rest of the nation was watching….and we embarrassed ourselves. Michigan business owners needed help. All we did was throw more logs on the fire. How much more do you expect business owners to put up with? ### 6