Incoming Michigan GOP ponders aggressive tax reform
November 19, 2010
By Christopher Bedford
LANSING, Michigan: One of the first parts of Governor-elect Rick Snyder's (R) 10-point reform plan --to cut the complicated Michigan business tax code, replacing it with a flat 6% business tax-- is being investigated by a hesitant state GOP.[1]
Republicans are skeptical, and know that details will need to be discussed over a series of meetings involving the legislature and governor. "The thing about Rick's 10-point plan," says new Senate Majority Leader Randy Richardville (R-Monroe), "is that it's not real specific."[2]
Republican lawmakers also understand that, as one of the 20 states with a trifecta (GOP control of both houses of congress as well as the governorship), blame for any unpopular moves will fall squarely on the party in the state's 2012 elections, while a Democratic minority can duck any fallout, continuing state partisanship with a "no" vote on Snyder's proposals.[1]
| Michigan House of Representatives | |||
|---|---|---|---|
| Party | As of November 1, 2010 | After the 2010 Election | |
| Democratic Party | 65 | 47 | |
| Republican Party | 42 | 63 | |
| Vacancy | 3 | - | |
| Total | 110 | 110 | |
| Michigan State Senate | |||
|---|---|---|---|
| Party | As of November 1, 2010 | After the 2010 Election | |
| Democratic Party | 16 | 12 | |
| Republican Party | 22 | 26 | |
| Total | 38 | 38 | |
Snyder, a multimillionaire businessman and political rookie, aims to cut $1.5 billion in taxes from the business tax and another $1 billion in taxes from their equipment and material costs, betting his intentionally aggressive plan will stimulate Michigan's lagging economy at the time of a $3 billion state deficit.[3]
"Unfortunately, we don't have the time or luxury for compromise," says Michigan Republican Party Chairman Ron Weiser. "People want us to change the culture in Lansing and make substantial change."[3]
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