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Thursday, November 20, 2008 | Archives

March 8, 2007

On the right track

Editorial

Democrats in the Michigan House of Representatives unveiled a number of bills last week designed to cut government spending and help stimulate the economy.

These bills are still in the initial stages of discussion, but so far it looks like they are on the right track.

The proposed cuts in government spending show the most promise, if the Democrats are ever able to get them approved.

They include an elimination of lifetime health care for new representatives once they leave office. That single benefit, coupled with term limits, has produced an enormous strain on the state budget. The plan also calls for current representatives to pay more for their health care coverage than their predecessors.

It shows two things: an acknowledgement that the health care issue is one that affects everyone throughout the state and those who need to find a solution for it should take the first step. There’s no reason government officials can’t make the same sacrifices the rest of us have to make. Maybe only when the expense of modern day health care is laid out in a way that will impact them, personally, will they take action to try to ease this burden on the rest of us.

The economic stimulus plan would reduce the overall personal property tax businesses pay, which would help industries inordinately hit by the tax—namely the struggling manufacturing industry. We’re a little more skeptical of that idea, though, since many municipalities rely heavily on the funds that personal property taxes bring in. Built up communities have already taken their fair share of hits and have had to scale back services because of it. Any plan to further reduce their revenue should be closely examined.

Another part of the plan is to help automakers by reducing the sales tax consumers pay on new cars. The sales tax on the value of their trade in would be deducted from the sales tax they’re required to pay for the new vehicle, saving an average buyer about $600. We’re not sure if that will help the ailing auto industry, but coupled with other automotive incentives, it should at least make purchasing a new vehicle more attractive.

These ideas have a long way to go before they’re implemented. We like the concepts, though. They direct efforts and provide help where help is most needed.

http://www.journalgroup.com/Opinion/3447

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