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Vegas
05-21-2007, 05:04 PM
I don't get this at all. Michigan needs tax cuts.

http://detnews.com/apps/pbcs.dll/article?AID=/20070521/UPDATE/705210419

LANSING -- Michigan needs a tax hike because it can no longer afford cuts to essential services, a group representing school districts, local governments, health care providers and others said today.

The news conference at the State Capitol was intended to crank up the pressure on lawmakers who are considering deep budget reductions to reduce the current $800 million state deficit.

A vote in the House on a tax increase could come this week.

"Taxes are the price you pay for a civilized society," said Don Gilmer, Kalamazoo County administrator and former lawmaker.

Other members of the Michigan Responsibility Project said further cuts will damage the social safety net.

"I live at home and work as a volunteer. But without Medicaid help I might end up in a nursing home," said Jacqui Day, a Medicaid recipient from Lansing.

Dan Nowiski, a senior at Central Michigan University, said more cuts in higher education will translate to higher college tuition.

"That means more student debt, bigger financial burdens on parents and more students dropping out of college," he said. "I don't know if taxes are the answer, but higher education can't afford anymore cuts."

pnkpanther
05-21-2007, 05:36 PM
MN is pushing for hikes too, but we're a wealthy state



and i cant emphasize this enough, the ONLY state that didnt vote for Ronnie...

Vegas
05-21-2007, 05:48 PM
MN is pushing for hikes too, but we're a wealthy state



and i cant emphasize this enough, the ONLY state that didnt vote for Ronnie...

So there should have been an exception made for the tax cuts with MN paying the old up to 70% marginal rates??

pnkpanther
05-21-2007, 05:55 PM
So there should have been an exception made for the tax cuts with MN paying the old up to 70% marginal rates??

Lol

no, but MN rates are high enough

Vegas
05-21-2007, 06:04 PM
Lol

no, but MN rates are high enough

The biggest reason I moved out of Wisconsin 22 years ago was the ridiculous tax rates. And I still believe that high tax rates don't bring in higher revenue.

Jiddy78
05-21-2007, 06:23 PM
The biggest reason I moved out of Wisconsin 22 years ago was the ridiculous tax rates. And I still believe that high tax rates don't bring in higher revenue.

Florida taxes are some of the least...yet revenues are as well...You were saying?

Vegas
05-21-2007, 06:26 PM
Florida taxes are some of the least...yet revenues are as well...You were saying?

If the tax rates are zero, the revenues are zero. But when you're talking about marginal rates, there is absolutely not a linear relationship between revenues and rates. Tax rates affect behavior.

Vegas
05-21-2007, 06:27 PM
Here's the famous Laffer curve:

http://upload.wikimedia.org/wikipedia/commons/4/47/Laffer_Curve.png

Jiddy78
05-21-2007, 07:02 PM
If the tax rates are zero, the revenues are zero. But when you're talking about marginal rates, there is absolutely not a linear relationship between revenues and rates. Tax rates affect behavior.

Socialism? ;)

Jiddy78
05-21-2007, 07:06 PM
Here's the famous Laffer curve:

http://upload.wikimedia.org/wikipedia/commons/4/47/Laffer_Curve.png


That sums up the fed's activity...Trying to hit a peak...but alas, that peak is unattainable when subjected in a real situation...thus you have booms and busts formed just by trying to be perfect....Imperfect humans striving for perfection...It is comical sometimes...But most times not...

LSU
05-21-2007, 07:22 PM
Here's the famous Laffer curve:

http://upload.wikimedia.org/wikipedia/commons/4/47/Laffer_Curve.png




So you tax at 50% and everything is perfect.