It is 2012, a new tax year, and in Michigan the beginning of a free ride for two thirds of businesses in Michigan. Thanks to Governor Snyder, and his fellow business owners, I mean Republicans, only businesses organized as “C” corporations will have to pay Michigan taxes. What makes this change particularly bad in Michigan is that we are one of only 7 states with a flat income tax. So when wealthy business owners like the owners of Biggby Coffee pay taxes on what they bring home from that business, it will be at the same rate as the school kid serving up the coffee they make. Does anyone still wonder why there is a movement against the 1% in America? There should also be a movement against a flat tax as well.
The flat tax became part of Michigan’s Constitution in 1963. Efforts to repeal the flat tax have failed three times, with the last attempt occurring in 1976. The Michigan Chamber of Commerce helped defeat those issues, and their opposition is more evidence to me that repealing the flat tax is what is right for Michigan. I believe this should be the next big petition drive once the Repeal Public Act 4 (Emergency Financial Manager) petition drive finishes up. This could also be a good cause for the Occupy Michigan movement to rally around. If we are to keep the tax breaks for businesses, lets make sure that the people who benefit the most from the free ride chip in more for the trip.