If you live in Michigan, your state income tax bill just went up about 12%. In order to end the “shutdown,” legislatures voted to raise the income tax from 3.9% to 4.35%.
They also approved a measure which allows them to start arbitrarily taxing certain services. Aside from the obvious culprits (e.g., strong lobbies against the tax by cable carriers and sports teams) there doesn’t seem to be any rhyme or reason to the program’s carve-outs. For instance:
Cable television will avoid the surcharge, but investment advising will not. Manicures and tanning will be taxed, haircuts will not be. Lift tickets will be taxed, but not greens fees at the local golf club. Keeping your motorcycle in storage for the winter will be taxable, but keeping your boat at the marina for the winter will be tax-free.
Say what you will about the merits and demerits of democracy – but I don’t know a single person who is happy to pay an extra six percent for anything. If this measure had been put to a popular vote, it likely would’ve been close to unanimity, against either the income tax increase, or the new excises.
“Representative,” my ass.