Michigan Republican Gov. Rick Snyder
Michigan has found a way to make up for some of its budget shortfall after cutting corporate taxes to the bone—just tax people who smoke and drink more! Chad Livengood
reports:
Revenue from so-called sin taxes on tobacco, beer, wine and liquor totaled $290.5 million in the 2014 fiscal year, more than twice the $137.6 million net income taxes paid by Michigan businesses after receiving $768.8 million in refunds from tax credits, a Detroit News analysis of tax data shows.
Since Gov. Rick Snyder and lawmakers delivered sweeping tax relief for businesses in 2011, net business income taxes dropped 90 percent, depleting the state's main operating fund of $1.33 billion, according to state revenue data.
GOP Gov. Snyder and his Republicans (who control
both chambers) sure did "deliver." So much so that the data show tax receipts from business had dropped from accounting for 21 percent of the state's general fund to producing just two percent of it over the past decade.
GOP legislators are in a real bind now, after voters rebuffed an effort to raise more revenue through sales and gas tax revenue. But don't worry, the sin-tax trend shows no signs of abating in Michigan.
Taxes from the Michigan Business Tax and Corporate Income Tax are projected to total $244 million this year, while beer, liquor, wine and tobacco taxes will total about $280 million, according to Senate Fiscal Agency data.
For the 2016 fiscal year budget, which lawmakers are debating, sin taxes are projected to top $278 million, while business taxes will net $159 million after more than $800 million in tax credits, recent tax data show.