Chad Dewey for Liberty

I keep seeing Michigan politicians patting each other on the back about the personal income tax going from 4.35% to 4.25% to 3.9. Then eliminated the “Business Tax” only to turn around and create a “Corporate Tax”. Then they try to explain how the 6% sales tax will sustain these “huge” decreases in revenue. None of these high taxes are truly necessary – just look at Wyoming and South Dakota.

A little information about Wyoming and their taxes:

• Wyoming sales tax rate is currently 4.0% with prescription drugs and groceries exempt from sales tax.
• Wyoming has no personal income tax.
• Wyoming has no corporate income tax.

A little information about South Dakota and their taxes:

• South Dakota sales tax rate is 4.0%.
• South Dakota has no corporate income tax.
• South Dakota has no personal income tax.
• South Dakota has no personal property tax.
• South Dakota has no business inventory tax.
• South Dakota has no inheritance tax.

Both of those states enjoy some of the lowest unemployment rates in the country because people and businesses get to keep more of their money. When people and businesses get to keep more of their own money, rather than let government take it from them and squander it, prosperity occurs. Businesses and people are more free to invest and use their money wisely.

Michigan politicians could learn something from this simple economics lesson.

Please share my message and help send me to Lansing this November so that I can present this lesson personally.

FOR IMMEDIATE RELEASE:
July 14th, 2012
Contact: Christina Cauchy, Media Relations
christina@chaddewey.org

National Federation for Independent Business Endorses Chad Dewey

BAY CITY, Michigan – This week the National Federation for Independent Business (NFIB), the nation’s leading small-business advocacy association, has endorsed Chad Dewey’s campaign for Michigan’s 96th District seat.

“I am very honored to receive the endorsement of the NFIB this week.” said Dewey.

“After a careful review of the candidates we have found that Chad Dewey has a keen understanding of the problems facing family businesses and their employees,” said Charles Owens, NFIB State Director. “We wish Chad success in the upcoming election and we look forward to working with him in the Michigan legislature.”

“It is important to understand the economics of how the government can negatively affect business growth,” Dewey explains. “Politicians love to tout how they’re going to create or save jobs if elected, but in reality, the best move the government can make to help job creation is to get out of the way and stop interfering with the free market.”

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Chad Dewey is a pro-Liberty, Conservative Constitutionalist candidate for the Michigan State House, 96th District. Learn more about Chad Dewey at his web site http://chaddewey.org and Facebook campaign page http://facebook.com/ChadMDewey. More information about the National Federation for Independent Business (NFIB) can be found at their web site http://www.nfib.com/mi.

FOR IMMEDIATE RELEASE:

Chad Dewey upset with failure of Zero Income Tax Amendment

BAY CITY, Michigan – Chad Dewey announced today that he is not happy with the failure of an amendment that would have brought Michigan’s income tax to zero.

“The argument I keep hearing is ‘What will we replace the income tax with?’” says Mr. Dewey, “The answer is easy. Nothing.”

HB 5699 is set in place to drop the income tax from 4.35 percent to 4.25 percent within the next year, while HB 5729 drops the income tax down to 3.9 percent over the next six years.

“The idea that this zero income tax amendment failed tells me that we still have a problem in Lansing and that rather than cut taxes and allow people to spend their own money, they’re not willing to curb the real problem – Lansing spending. Other states such as Wyoming and South Dakota have no income tax or business tax and they enjoy some of the lowest unemployment rates in the nation.”

HB 5699 has passed the House and Senate, while HB 5729 has passed the House and is expected to pass through the Senate.

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Chad Dewey is a pro-Liberty, Conservative Constitutionalist candidate for the Michigan State House, 96th District. Learn more about Chad Dewey at his web site http://chaddewey.org and Facebook campaign page http://facebook.com/ChadMDewey.

Politicians are going back and forth on how to bring jobs back to Michigan. Most of your typical politicians in Lansing want to give tax breaks or tax-funded grants to businesses to bring their business here. Some are only temporary as we witnessed with the Michigan Film Incentives, in which some reports show the film industry took in more than they gave back. Temporary business is not what we should be looking for – we need permanent jobs from businesses who are willing to come to Michigan and stay.

However, with a high, unnecessary business tax that punishes businesses for staying in Michigan, why would they want to come? Currently, sales tax and income tax are the two primary sources of Michigan tax funding by far. 56.4% to be exact versus only 8% in revenue from the business tax. So how can more of the two primary sources of income for the state be generated without raising income and sales taxes? Simple – remove the business tax completely, which will bring businesses, and the jobs that come with them, to Michigan. As we all know, when businesses sell a product, they charge a 6% sales tax on the majority of items purchased by consumers. When people go to work for those businesses, they pay an income tax. When more businesses come to Michigan, they will generate more sales tax and more income tax (with no raises to either) and will easily make up for the “lost revenue” by the removed business tax.

I have had people ask “So are we just going to not tax businesses at all?!” They’re already being taxed on several levels already, so the business tax is no more than a tax for doing business in Michigan. Penalizing businesses to stay here is not the way to keep businesses here. They’re already being taxed and pay taxes, so why add another? They pay property taxes just like we do on our homes, or their landlords do if they rent. They collect and pay income taxes on employees. They pay capital gains taxes. They pay taxes on their profits. They collect and pay sales tax on purchases by consumers. Then on top of that, they pay a business tax. Currently, Michigan ranks 48th out of the 50 states regarding corporate-friendly tax rates according to taxfoundation.org. That won’t bring businesses or jobs to Michigan.

Besides, we would not be the only state who does not have a business tax. Texas, South Dakota, Washington, and Wyoming do not have a business tax. In fact, Texas, South Dakota, Washington, and Wyoming go one step further – they don’t have an individual income tax either. Now putting that into perspective, the unemployment rate in Michigan is at 11.2%. The unemployment rates for the other states with no business tax or individual income tax are:

• South Dakota: 4.7%
• Texas: 8.5%
• Washington: 9.1%
• Wyoming: 5.8%

So remove the business tax and businesses will come to Michigan with jobs? The simple answer is…yes. However, changing the name to a “corporate tax” and taxing pensions will NOT bring businesses to Michigan and will NOT stop the mass exodus of people leaving Michigan in search of jobs.