Budget surplus? Tax Cut!

Lawmakers, especially the GOP variety, can be so annoying. The state news on Michigan Radio this morning first told about how the state legislature can't seem to come up with the money for the much needed repair to state roads. The difficulty is the GOP senators refuse to raise any taxes (income, gasoline, etc.) or fees (vehicle licenses).

That news was followed immediately by the coming GOP list of legislative priorities for the year. At the top of the list is a reduction in the income tax rate -- an "election-year tax cut" as news reports put it -- because there are projections of a budget surplus. The "election-year" phrase tells me it is for buying votes. There is also the representative who is aiming to zero out the income tax.

Of course, Democrats aren't all that far behind in pandering to the masses in saying a tax cut is a good idea. Though they temper that with a longing to do something for retirees (who only had to pay income tax starting a couple years ago), the middle class, and the poor. And wouldn't it be nice if we did something for the schools (whose budgets have been slashed over the last few years).

The GOP would likely insist on an income tax reduction. That's because the Michigan constitution requires the income tax to be a flat tax -- the rich benefit the most when it is cut. The GOP is also quite aware that a tax cut is a lot easier to vote for than a tax increase. Which means at the next downturn Michigan would have a hard time (again) taking care of its citizens -- another goal of the GOP.

Amazingly (because he is GOP), Gov. Rick Snyder is acting like the adult in the room and isn't in favor of a tax cut. With his business background he understands financial health. Cutting taxes at every hint of a surplus doesn't lead to fiscal responsibility.