Across the state a stark realization is dawning in these early days of 2012.
The Raw Truth:
"Many companies will see significantly lower tax bills or pay no business taxes at all in 2012, thanks to a switch from the Michigan Business Tax to a new 6 percent corporate income tax that kicks in Sunday and falls mostly on large corporations with shareholders. Businesses can expect to pay $1.1 billion less in taxes this year and $1.7 billion less in 2013, according to estimates. Two-thirds of companies will pay no state income tax at all."
Source: Kathy Barks Hoffman, Associated Press in "New state tax rules good for business: Some residents, though, will end up paying more this year".
So a raft of second tier businesses in Michigan will escape paying any business taxes (THAT'S ZERO BUSINESS TAX) in a continuing crucial season of low revenues and serious budget shortfalls for all Michigan units of government.
On the other hand the LARGE CORPORATIONS WILL PAY MORE. In other words the manufacturing sector, so vitally important to Michigan's future and long-term well-being will be paying more. What sense does that make? Ask the Nerd. Snyder's Relentless Corporatist Action has fissures and fault lines. This state is in for a crude and rude economic ride, inflicted by Snyder's muddle-minded self-delusion.
The Nerd's A Victim of His Own Unreality
Snyder's policies are NOT positive; they are stubbornly False-Positive Snyder style. Can we afford a neophyte governor who is in deep denial and suffers from self-delusion? Snyder's abysmal approval rating tell it all!
We think Not.
Michigan according to A.P.'s Hoffman:
"Residents born between Jan. 1, 1946, and Dec. 31, 1952, will have all retirement income liable to tax whether it's from a public or private pension, 401(k) or IRA. Exemptions can be claimed for up to $20,000 for a single filer and up to $40,000 for joint filers. Above those levels, retirement income will be taxed at the state income tax rate of 4.35 percent. When these residents turn 67, the $20,000/$40,000 exemption applies to all income, not just retirement income. The exemption is eliminated if a taxpayer claims a deduction for a military or railroad pension. This will affect about 230,000 returns."
"[Michigan] Residents born after 1952 will see all retirement income taxed as regular income until they turn 67, at which point they'll qualify for a senior income exemption of $20,000 for single filers and $40,000 for joint filers on all income. A taxpayer can forego the $20,000/$40,000 exemption and instead deduct 100 percent of Social Security income. A taxpayer claiming the $20,000/$40,000 exemption can't claim the deduction for Social Security or the standard personal exemption. This will affect about 150,000 returns."
En total this means 380,000 returns will be under the gun of Snyder's re-invention: The Nerd has hatched a scheme: UPWARD INCOME RE-DISTRIBUTION.
CATCH THIS: IT'S A Snyder Invention: RADICAL UPWARD RE-DISTRIBUTION OF INCOME-BILLIONS GIFTED TO SNYDER'S BUSINESS CRONIES.
What could be more insulting, unfair, or cripplingly regressive in Michigan's hour of need?
Those who follow these prognostications criticizing Nerdonomics will credit this blogger with accuracy on the issue of Snyder's corporate and Chamber of Commerce pandering. The results in a profound hit on Michigan's retail commerce and customer demand; at least $1.1 BILLION LOST, BILLIONS OF LOST PURCHSES IN 2012 AND $1.7 BILLION LESS CUSTOMER SPENDING ONGOING INTO 2013.
The more frequent confused and sad look on the Nerd's public face elicits neither sympathy or support. More loss of family spending power, more costs for such things as college tuition and services are bone grinding. And at the same time; the chocolate on the DeCon: Amid this historic one state depression Snyder and the heartless and stoneheaded rampage by the TeaPublican Know Nothings, comes down to this sad blow. Michigan deductions for community foundations, food banks and university services...Summarily eliminated. Insult added to injury!
Snyder's Re-Invention: Relentless Aggressive Political Stupidity: It's Michissippi Rising RAPS !
Original.
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