Michigan Politics: Triple Zero Plan


budget

budget (Photo credit: 401(K) 2013)

In order for Michigan to turn itself around, we need an aggressive strategy to drive more money into the economy on a daily basis.  The first step should be to outline a series of tax reductions that will help every single person in the state, regardless of their situation.  The Triple Zero plan outlines how eliminating the Gas Tax, the Business Income Tax, and the State Property Tax would drastically help boost the economy from day 1.

1)      Eliminate the Gas Tax

  1. Gasoline prices are one of the main drivers of the economy.  Typically, when the economy slows down, gas prices fall. Unfortunately, during the Great Recession, this has not been the case.  By eliminating the Gas Tax, people would instantly pay almost 40 cents less for every gallon that they purchase. This money is small enough on a weekly basis that it would get recycled right back into the economy, providing boosts to local businesses.  The elimination of this tax would help every single person who owns a car, as well as all municipalities who run public transportation programs.

2)      Eliminate the Business Tax

  1. Businesses do not invest during recessions.  Consumer Confidence is down, they don’t know when the economy will turn around, and they typically are having trouble keeping up with their bills.  They don’t invest in jobs, they don’t invest in innovation, and they raise prices of their products/services.  By eliminating the Business Tax entirely, you will give businesses the additional money they need to keep prices steady, hire more people, and invest in the innovation that will help bring about the next economic boom.  Eliminating this tax would help every single business in the state, as well as help drive new businesses to want to leave other states and settle in Michigan.

3)      Eliminate the State Property Tax

  1. Michigan has been one of the hardest hit states in Foreclosures and underwater mortgages.  Yet, the state still charges a hidden property tax (above and beyond what your local municipality charges).  This state will never recover without at least a partial recovery of the housing sector.  By eliminating this tax, you would be putting money back into the homeowner’s hands, lowering the foreclosure rate, and driving Michigan Home Prices upward.

Due to the fact that states have to balance their budgets, we need to decrease spending in order to decrease taxes.  The good news is that the three taxes I have outlined for elimination only make up 14% of the states revenue.  This means that the state will have to cut their budget by 14%, something that almost every single business has had to do during the Great Recession.  By eliminating programs, wasteful spending, and over-regulation, Michigan can eliminate over 14% of its expenditures and make room for these three tax cuts which will drive money back into the economy, increase job openings, raise home prices, and help Michigan emerge from this recession as a stronger, leaner state.

Please share this article with your friends and family in Michigan to help spread awareness on how the Triple Zero plan can help lead us back to prosperity.

Follow me @ToddHagopian for more creative ideas on how we can help turn Michigan around, and share this blog post with your friends and family.  Thanks!

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About Todd Hagopian (@ToddHagopian)

Todd Hagopian received his BA from Eastern Michigan University with a major in Political Science. After graduation, he worked as a Financial Advisor and a Bank Manager before returning to school. He attended Michigan State University, where he completed an MBA with a double-major in Finance and Marketing. Todd is now a Senior Product Development Manager for a Fortune 500 company. He frequently writes about business issues, social media strategy, and political issues that he finds important. Enjoy the blog!

Posted on September 4, 2012, in Michigan Politics, Politics and tagged , , , , , , , , , , . Bookmark the permalink. 2 Comments.

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