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Originally Posted by PiKA2001
I haven't looked at the bill since I've been on the road for the past month but if it's as extreme as you make it sound I doubt the bill will pass. Even if does pass the courts could strike it down. BTW, how much did the tax rate go up by?
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There is one bill in the House and a different one in the Senate. The one in the house says that an independent firm can declare a city or school district in financial crisis.. the Senate bill says it has to be a person to do it. However, both the House and Senate have a Republican majority so I won't be surprised if it passes. Whether it will stand up in court is the big question.
It's difficult to measure exactly how much the tax rate went up. He wants to eliminate the child exemption ($600 per child). The income tax rate had gone up to 4.25% temporarily and he wants to keep that in place so it won't go down to 3.9% again like it was supposed to. Pensions will be taxable income under his plan. It eliminates the Earned Income Tax Credit (only available for those at poverty level). It eliminates the Homestead Property Tax credit for those making more than $61K (previously set at $80K). The Homestead Property Tax Credit basically allowed you to deduct your property taxes from your income tax. It was already on a sliding scale some. Overall, 1.8 million increase in income taxes. 1.7 billion decrease in eliminating the business tax.
An analysis from an mlive.com article, which doesn't address the $600 child credit: For a senior couple with $77,500 in retirement income the plan, which also adjusts income tax credits for property tax liability, the proposal would result in a tax increase of nearly $2,600. For a couple with $42,000 in income, the tax bite would be nearly $900.
http://www.mlive.com/politics/index....plan_intr.html
The 1.4 billion dollar budget deficit would be addressed through cuts to education, local municipalities and concessions from state workers.
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