Governor Snyder is getting ready to sign another business tax cut into law. This time he is abolishing the Personal Property Tax imposed on business equipment. Equipment includes everything from computer keyboards to lathes. This has been a standing tax since 1893 that provides income to the local communities. The taxes are paid directly to local municipalities. The Governor claims it frees the business community to update machinery, tools, and office equipment, making the business arena more appealing to the prospects of bringing in new business. I wasn’t sure if I agreed with repealing the tax, but then I realized who was going to pay for the losses. Once again, like almost everything Snyder signs, the people will pay. Without a clear and distinct replacement for the loss of income on the local level many cities will fall, or at the very least, significantly suffer.
River Rouge counts on the property tax for 56.8% of its income. Ecorse, who is already under an Emergency Financial Manager, gains 45.8% from the tax. Dearborn, with their large industrial base, earns 12 to 17 million, or 20% of their income, from this tax. The already struggling Detroit will lose another 16.6 of its failing income. The property tax dollars fund schools, fire, police, and city communities with other needs. The entire Snyder regime knows the devastation that can, and probably will, occur in these cities if that income is snatched away from the cities that depend on it. Of course, it sets even more cities up for Snyder appointed dictators in the form of Emergency Finance Managers, doesn’t it?
The State says they will replace the money lost, but where will that missing 1.2 billion a year come from? Remember the 1.8 billion that was given to big business and replaced by taxing the elderly retirement checks and education? Who else will he rob to replace 1.2 billion? Like many of the past State promises to replace missing income, it won’t happen. He won’t fill the void and if he does will it come in the form of raised property taxes of residents? There is one thing for sure that we have learned from Rick Snyder and that is if he signs it it’s going to affect the “lower classes” not the wealthy.
With Allen Park, already hoping to pass a 4 mill millage on May 8th, how much will those property taxes have be raised, without a vote if need be, if the business tax is repealed?
I don’t know how much more cities like River Rouge, Ecorse, Allen Park, Dearborn, Detroit, and so many other Michigan cities, and their residents, can take. Is Snyder committing municipal homicide? Something has got to give. The people can’t continue to carry the wealthy on their backs. The weight is becoming too heavy to endure.
It’s getting to the point where all I can say is “God Help Us All!”
Till the next time…over and out!