Recently I became aware of a plan by our governor to add a new tax on services. I think this is a bad idea. Please consider reading my comments below that I sent to the governor. If you feel as I do, please visit the link below and let the governor know what you think about the issue.
http://www.michigan.gov/gov/0,1607,7-168-21995-65331--,00.html
The above link may have wrapped onto two lines but is meant to be all on one line. You may have to copy and paste the link into your internet browser (IE, Firefox, etc).
Here is what I sent to the governor:
Your proposed increase on taxing my labors is unfair and counter productive. You already receive 3.9% income tax on my earnings (the service I render) – is that not enough? My customers get technical service from me because I have competitive pricing against out of state (and out of country) firms that can do the same work. Your tax on my services will do nothing but entice my customers to buy their phone and online support from out of state providers.
This tax will increase the overhead for all companies that are in currently located in Michigan as now all services rendered to them will cost more. This tax will force out of state companies to look elsewhere to relocate their company when they learn that every service that is rendered to them (lawn cutting, copy machine repair, roof repairs, service technicians, consulting, accounting, etc) will be 2% more expensive than in other states. All this tax would do is increase the cost for businesses that are currently in this state, would help drive more businesses out of the state, and would put up roadblocks to companies that are considering moving into this state.
Increasing taxes on services will do nothing but continue to build walls to prevent Michigan from ever having an economic resurgence. Service industries based in Michigan are the only thing left that can help rebuild Michigan’s economy. Adding a service tax will kill that avenue of growth as service providers can, will, and are relocating to locations that provide a favorable environment to their company, their employees, and their customers.
I beg you to reconsider this tax. It will do more harm than good. Your lack of doing ANYTHING to increase Michigan’s business desirability is a glaring example to the rest of the nation as to how not to run a state.
It is time to do something positive! Now is the time to make Michigan thee place to be. If you build it – they will come. Please, for the sake of our children, make Michigan thee place to be and not the place to leave.
Sincerely, David Barker
President
Electrosonics, Inc.
17150 15 Mile Road
Fraser, MI 48026