Yes It’s True: The curse of taxes is they’re necessary

“Let me tell you how it will be,

there’s one for you, 19 for me…

Should 5 percent appear too small,

Be thankful I don’t take it all.

‘Cause I’m the tax man, yeah I’m the tax man.” — The Beatles, 1965

If there’s one sure fire way for a political candidate to lose an election, it’s promising to raise taxes. Damn few have ever dared to do that in a campaign.

However, a famous commercial in 1984 for Ronald Reagan depicted an elderly man who complains to his granddaughter, “Those Democrats wanna raise taxes again!” The young woman responds, “Don’t worry, Grandpa.”

One of the most remarkable tales of raising taxes and absorbing consequences was about two Michigan State Senators who supported a temporary income tax hike from 4.6 to 5.8 percent to handle a budget deficit.

The two were recalled by voters in their district, the deficit was erased and the tax rate was brought back down to 4.6%.

The damage had been done. When the two Demos were recalled, the Republican Party took over the majority 20-18 status, a majority the GOP has retained ever since, even taking a 26-12 advantage in 2016.

After John Engler took over the governorship, the income tax was lowered from 4.6 to 3.9 percent. Not satisfied, Republicans, including Patty Birkholz of Saugatuck, passed a bill to make the 3.9 percent permanent.

Gov. Jennifer Granholm finally persuaded a majority to support bumping the rate to 4.25%, where it remained until now. But the GOP wants to lower it back to 3.9 again.

All the while, many have complained about reduction in state services, particularly in roads. The GOP between 2010 and 2018 had sizeable majorities in the House and Senate and it had the governor’s chair with Rick Snyder. But it didn’t lift a finger to “fix the damn roads,” which became the most famous slogan of Gov. Gretchen Whitmer’s gubernatorial campaign.

OK, to  be sure, the roads still leave much to be desired, but a little thing such as Covid got in the way.

So it appeared the Republican Party was back to its old saw of reducing taxes, cutting government services and privatizing. Another gambit lately has been cutting the state gas tax, not now, but starting two years down the road. It looks good at first and on paper, but when you look deeper, you come to understand that if you want decent roads, quality education, necessary personnel and tools for fire and police, you have to pay for them — with those dreaded taxes.

The GOP still seems enamored with supply-side, trickle-down economics and continues to try to make government small enough to drown it in the bathtub.

But because too many people aren’t paying attention, don’t care and keep electing these bozos again and again, we’re about to see a lot of reruns.

17 Comments

  1. Jon Carroll

    VERY WELL STATED.
    If Republicans were REALLY concerned about lowering taxes, why did they
    not lower taxes on the lower income people???
    Republican Reality: like their brain that they sit on, they have two cheeks when they make decisions on taxes. Appease their base and the other side will will be compensated from “TRICKLE DOWN COMPASSION “.

    • Dennis Longstreet

      Mr. Carroll, I am sorry DTOM, the mental midget, is trying to give you a lesson about government. You were a highly respected teacher and coach at Wayland High, a government and economics teacher. Some low IQ people only listen to their political idols. Trickle down economics was Reagan’s idea. I remember interest rates at 20% highest unemployment rate ever most farmers went broke because of no trickle!

      • Don't Tread On Me

        As usual, Mr. Longstreet is misguided. I wasn’t addressing Mr. Carroll’s response but the author’s article.

        But I will address your inane comments. The high interest rates were the result of Jimminy Carter’s malfeasence while president. Once high, it doesn’t drop overnight when a new administration takes over. There was little to no job growth during Mr. Jimminy’s reign. Remember the gas lines and him begging the nation to put on sweaters and dial down thermostats? Once Reagan’s initiatives kicked in, unemployment tumbled, everyone who wanted a job could get one, interest rates were lowered, and we had fuel. President Reagan believed in the greatness of the American people, Democrats believe in more government and higher taxes.

        And Mr. Carroll was a fine teacher and coach, just a touch liberal ???? ???? ???? ????

        • Dennis Longstreet

          The highest interest rates and highest unemployment rates were in 1982 .Jimmy Carter had been gone for two years. I lived it I know tough times. Your GOP heros will always rule your life.

      • Don't Tread On Me

        Mr. Longstreet, look at facts not feelings as Democrats are so prone to do.
        National unemployment in 1982 was 12.8%, interest rates were 18% because as usual, Democrat leadership was so poor. Regan didn’t take over until 1981 after Carter, like Biden, made stupid decisions. Reagan had a recession on his hands after taking over. By 1985 to 1988 we had unprecedented growth and low unemployment. Interest rates lowered to a reasonable rate so people could buy houses and refinance. I remember those years well. I voted for Jimmy twice, I was a die-hard Democrat. Then I saw what real leadership gave us and became a Conservative. I smartened up, some never do.

  2. Don't Tread On Me

    As usual, your understanding of economics is troubling. The increase in taxes takes funds that would be otherwise used by the earners, instead it is diverted to the state, the same state that can’t balance a budget or cut any redundant or duplicitous programs or departments.

    Ever notice when government has shortages of cash the first response is ALWAYS to increase taxes, never to decrease spending? When your earnings don’t cover your personal expenses, you determine what changes can be made. The state government – never!

    Funny thing happens when tax rates are reduced, business activity increases and more sales taxes are captured! If you have low state business taxes, more businesses want to move into the state and provide jobs for citizens. As it is now, other states are winning in the business race because Michigan isn’t business friendly.

    Residents of the state have been fleeing in the past decade to friendlier states for lower taxes, job opportunities, and better climate. Michigan must change to keep and encourage new businesses to locate here.

    Our city is the highest taxed city in the county. It has the highest hook-up rates for water and sewer, more than twice the fees charged by other cities in the county. Why is that? Nobody seems to know.

    You don’t get more taxes by charging more over time. You end up losing population and opportunity to other states.

    And you are all wrong. Trickle down economics has always been the way of the U.S. and state government. It is nothing new and has been around since the government started taxing citizens. The poor benefit from the largess of those at the top paying the “freight” for those in the lower rungs of social strata.

    • “The GOP has gone all libertarian, and libertarians don’t believe in democracy, which they say should be replaced by “the magic of the marketplace” — or at least the “magic” of people made rich by the marketplace.

      Here’s the one question that always stops libertarians dead in their tracks when it comes to proclaim the wonders of their political ideology:

      “Please name one country, anywhere in the world, any time in the last 7000 years, where libertarianism has succeeded and produced general peace and prosperity?”

      There literally is none. Nowhere. Not a single one. It has never happened. Ever.

      If it had, that country would be on the tip of every Libertarian’s tongue, the way Democratic Socialists talk about Scandinavia where the full-on Social Democracy and regulated capitalism experiment has succeeded for generations…….. Skoal!

  3. Dennis Longstreet

    Mr. Carroll I found a way to cut taxes. Deduct all campaigning time from senators wages on tax payers time. let the RNC or the DNC make up the difference . Senators who do nothing should be laid off and the RNC or the DNC can pay them unemployment. We have a lot of them. Appeasing their base will ruin this country . Thats not to far away. Look at the stories before this one and the comments SCARRY!!

  4. MacDougal

    Polls prove its times like these where Democrat incompetence with government finance and economics at every level becomes apparent. Democrats have lost the working class in America and with them about 40% of Hispanic voters, who are starting to wake up. This will continue as long as the left remains utterly tone-deaf to average American families. If it continues, the Democrats will be the epic losers of musical chairs this November.

    It turns out that not being able to feed your family, gas up your car or make improvements to your housing situation has a language all its own. The incompetence of Democrats is something any working person with objective thoughts can understand and observe.

    Instead of begging OPEC to pump more oil, a President only needs to do one thing. That one thing is to credibly convince oil exporting nations to increase supply.

    How does a President do that one may ask? By telling everyone we will do exactly that on our own, here on our continent; and taking real steps to make that happen.

    OPEC and Russia understand the one trick Donkeys only know how to say “no” to more energy, so when Democrats say such things, everyone is naturally skeptical of a Democrat actually following through to increase supply…so they are emboldened to push the price as high as possible and laugh all the way to the bank.

    If they think a sincere increase in production is coming, they will do everything they can to create a new equilibrium price to remove incentive from the market for us to make those investments.

    Democrats never understand this and people of all races and creeds who work for a living in this country now are starting to wake up and understand that hardship, high expenses and less money in your pockets is what makes Democrats in politics the happiest. The left thinks green energy is just a magical switch that gets flipped, no transition plan needed, unintended consequences, shortages and higher costs (and new taxes) must simply be swallowed by working people. Everyone wants a better environment and lower emissions. You can’t make that happen with a broken economy. You need a comprehensive energy strategy that includes a serious and realistic plan to make the transition over a period of decades.

    November can’t get here fast enough. The political realignment that is coming in this country has never presented a better opportunity for people who want to make Government better instead of bigger.

    • So we’ve just seen another Republican congressman, Jeff Fortenberry, be convicted of illegal campaign contributions from a foreign entity and the latest news on Mrs. Ginny Thomas, I’ll agree with your comment on November can’t get here fast enough so the American people can vote to remove these corrupt Republicans from holding office. I’m sure the Hispanic population is aware of the Republicans’ tactics to try to influence their vote, after all it’s the Republicans who are up to no good when it comes to voter suppression.

  5. David

    I once heard the following statement. If you are not a liberal when you are young, you don’t have a heart. If you are still a liberal when you are older, you don’t have a brain.

    • Another inane comment from the Christian warrior, March is laugh fest can you tell the readers where your performing.

      • MacDougal

        And Gar goes for the classic refuge of the liberal failed argument. When they are beaten by facts and logic, they always resort to…the personal attack.

        The label of “nazi”, “facist” or “christian warrior” always applies when the liberal can’t support their side of a debate with anything real.

        • Now I know it’s not from Faux news or RT America but Here’s your proof even Murdochs Forbes magazine has it listed.
          Happiest Countries in the World 2022
          Happiness Score 2021
          2.5
          3
          3.5
          4
          4.5
          5
          5.5
          6
          6.5
          7
          7.5
          8
          Click on a tile for details.
          Since 2002, the World Happiness Report has used statistical analysis to determine the world’s happiest countries. In its 2021 update, the report concluded that Finland is the happiest country in the world. To determine the world’s happiest country, researchers analyzed comprehensive Gallup polling data from 149 countries for the past three years, specifically monitoring performance in six particular categories: gross domestic product per capita, social support, healthy life expectancy, freedom to make your own life choices, generosity of the general population, and perceptions of internal and external corruption levels.

          In order to properly compare each country’s data, the researchers created a fictional country—christened Dystopia—filled with “the world’s least-happy people.” They then set Dystopia as the rock bottom value in each of the six categories and measured the scores of the real-world countries against this value. All six variables were then blended to create a single combined score for each country. Interestingly enough, the top seven happiest countries in the world for 2021 were all Northern European countries. Finland took top honors—for the fourth year in a row—with an overall score of 7.842, followed (in order) by Denmark (7.620), Switzerland (7.571), Iceland (7.554), the Netherlands (7.464), Norway (7.392), and Sweden (7.363)…….. Skoal

      • David

        Gar, Thanks for the expected response and putting a warm smile on my face. You really must be a real charmer at social events.

  6. Just an ol' farmboy

    When our household expenses increase we adjust our monthly budgets to compensate accordingly, to remain viable, no matter how much it hurts. When was the last time we saw any government entity do this? Very seldom if ever!
    Let’s start with our great state.
    Do you realize that only 10 states have a full time legislature. Yep we are one of them.
    Did you realize that states that have full time legislators (at least 84% of the time on the job) are paid an average of $82,358 annually. In Michigan the average is $71,685. With 148 legislators in Michigan if we could cut this in half or more, well you can do the math. This does not include the generous expense accounts that could also be cut.
    States that spent 74% on the job legislators are paid an average of $41,110 and states who spent 57% of a full time job were paid$18,449 annually.
    I would like to know why do we need a full time legislature! Especially when I see how ineffective they are. Full time legislators also have larger staffing numbers on the average which means more money again. When was the last time cuts were made there during hard times? NEVER!
    Let’s talk about “fixing the damn roads”. As I travel the state I can’t help but notice all of the fancy lit signs telling me how long it will take to get somewhere or if the road is closed ahead. Seriously!!! So it’s become more important to know this than to not have to worry about a chunk of cement falling from the bottom of an overpass Into my windshield or the suspension of my vehicle being damaged by a road crater? This is only one example. How did we ever survive the last 100 years with out this vital information? I wonder what lawmakers relative got the contract for this nonsense. Something to think about.
    I fully support good schools. I don’t support sports programs that take money away from that good education. There has been several articles lately about the pool in Wayland. I totally agree with Mrs. Kuyt, it is just another “kick the can down the road” redirect that we have seen to many times. People that pay attention would tell you the same thing. ( if we don’t increase it they won’t notice but we are still screwing them) ( sorry, my simple interpretation). Everyone knew this day would come, why wasn’t money set aside ahead of time for this? We have a slush fund at our home for well water problems or when the septic tank needs pumping because we know it is coming. I am not trying to pick on the pool people but this is just one current example, one of many that needs to be adressed!
    I won’t even touch on our federal government situation, if you can’t see that mess you must be totally blind or totally ignorant, but I will admit that I do like Mr. Longstreets idea but would like to go a bit further. (Yes Dennis we may share a small piece of common ground. Political process disgust as I see it.)
    All money used to promote a political canidate should be taxed at a minimum of 50%. I don’t care if the money comes from the candidates pocket, a corporation, personal donor, a PAC or God himself TAX IT!!! Many individuals and businesses that claim they can’t pay more taxes because they need the money to create business ect. all seem to be able to find significant sums of money to promote their favorite political canidates, (causes pushed by said canidates) and claim it on their taxes as well. This would capture some of that untouchable money that seems to flow so freely at election time.
    This would do 2 things at least.
    1. We would’nt have to put up with all constant ridiculous political ads on TV and radio every election cycle.
    2. It would generate a huge amount of money to be put to good use such as lowering the national debt, fixing our damn roads or maybe even lowering our taxes.
    I could go on and on but it’s time to retire to my office to pay the weekly bills and the dog needs some exercise so for now I surrend my soap box.
    Good day.

    • Don't Tread On Me

      Great observations and recomendations!

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