Ted Golden, M.D., Best 2018 Candidate
Michigan House of Representatives
Rochester, Rochester Hills, Oakland Township
Welcome to Ted Golden, M.D.
Seeking Your Vote from District 45
Copyright © Ted Golden, M.D. Candidate Michigan House of Representatives
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Michigan State Income Tax
I believe that the Michigan State Income Tax must be fair, and there should be no taxation without representation. There are different ways of judging fairness depending on one's political philosophy. I believe that taxation should be based on the ability to pay. I believe that all dollars should be created equal, since they have equal value when used to buy things.
My priority concerning fair taxation is to have all medical expenses taxed fairly. Therefore, I would like Michigan to follow the lead of Arizona. Arizona allows all medical expenses that can be reported on Schedule A of the Federal 1040 tax return to be subtracted from gross income subject to taxation.
Adjusting senior citizens tax burden downward and extending tax credits to the less fortunate will be something that I will work for, but this will be difficult to accomplish with the Republicans in control. More on this later.
Most Michigan citizens pay taxes when sales tax is included, which is good because I feel that everyone should pay some taxes. However, low income individuals who must spend a greater portion of their income on taxable essentials are percentage wise more burdened by the sales tax. The sales tax is therefore referred to as a repressive tax.
The Michigan Constitution does not allow a graduated state income tax. Only a flat rate state income tax is allowed. Most states that are economically doing better than Michigan have a graduated state income tax. I feel that most of the citizens should pay some income tax, which can be more fairly accomplished with a progressive income tax rate. I favor a graduated state income tax, which is not likely to happen due to the state constitution. As your representative I will work with the flat tax rate.
The state of Michigan is projected to have a serious budget deficit during 2019 and 2020, which has to be factored in when discussing taxes, especially the 4.25% tax rate. Governor Synder has been opposed to reducing the 4.25% tax rate. I agree with Governor Synder.
The federal tax reform laws that were passed in December, 2017, would have caused problems for Michigan taxpayers to take a Michigan exemption. I agree with the recently proposed legislation that will keep the Michigan personal exemptions in place, and raise the exemption amount per person to $4,900 by 2021. The Republican controlled Michigan legislatures did not give seniors any additional tax breaks.
While working with a flat state income tax rate we should look at what was recently done in very conservative North Carolina. Until recently North Carolina had a graduated state income tax. They changed to a flat rate that will be 5.25% in 2019. Their current standard deduction is $8,750 for single filers and $17,500 for joint. An itemized deduction can be taken instead of the standard deduction if it is advantageous to the taxpayer. The result of the North Carolina approach is a pseudo progressive tax rate effect because a person with lower income would have percentage wise a lesser amount of income subject to taxes compared to a much higher income individual. Michigan should copy conservative North Carolina concerning the state income tax.
Before Synder came along the state eased the tax burden on seniors and those less able to pay by adjusting taxable income downward for seniors or tax credits for others. Synder felt that businesses had an unfair tax burden and early on he eliminated and reduced many business taxes in order to improve the business climate. To make up the lost tax revenue resulting from the business tax cuts Synder eliminated the senior's tax breaks and reduced certain tax credits. The lost tax revenue was not completely replaced by what Synder did. The decreased tax revenue was an important factor underlying the Flint Water Crisis. Synder claims that the Michigan economy improved a lot because of what he did. Others have stated that the most important reason Michigan's economy improved was due to the improvement in the U.S. Economy. Were Synder and the Republicans fair in how they changed the tax code?
Ted Golden, M.D.