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“I Hear the Store is Saving Money.”

GAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAARRRRRRRRRRRRRRRRRRRR!!!

“WAIT…they’re paying you minimum wage?”

“I’m up for a raise soon.” The young attendant at the Meijer self checkout took my embarrassing, late night grocery store rant in apparent stride.

“But…WAIT…wait…they’re paying you MINIMUM WAGE?”

“A-yup.”

I had just spent the past 15 minutes at the massive supermarket, trying to find a cat flea medicine that was actually priced as labeled on the shelf: “But….but….who on earth is benefiting from this new No Price Tag law thing, then?”

“I hear it saves the store money.”

“Are they at least hiring more people?”

“No, I think they cut back the hours of the stock guys.”

AAAARRGH!

“So….I just spent 15 minutes hunting down cat flea stuff that matched the marked price because of a law that saves the store money and the store isn’t hiring more people, you’re paid minimum wage to hear some guy rant at the checkout at 10 PM, and I’m STILL seeing my grocery bill go up….”

“Sorry.” The young woman shrugged.

“No…no….it’s not your fault. I’m sorry. I’m…I’m just ranting. Just being an ass. You know…I’d be a little better with it if I knew the folks here were at least paid more than minimum wage.”

“I’m up for a raise soon!” The young woman smiled again.

“I hope it’s huge. Okay…well, have a good night. Thanks for helping me get this cat stuff thing figured out.”

—–> Michigan was sort of spoiled for the longest time. We had an excellent law that required stores to price each item individually, so that people could quickly and easily compare prices against the scan price at the checkout. The whole point was to give consumers as much information about their purchase as possible.

I never realized how much I USED those price tags until they were gone. Recently our Governor and conservative congress scrapped the consumer protection law, under the guise of “saving stores money” so those savings would get “passed on to the consumer” or “used to hire new workers.”

But…so far none of that has happened. All it’s done is make people wander around the store trying to find out [...]

Michigan Republicans Raise Taxes on Low Wage Earners By $1000 per Year

I suppose I should be talking about this since it’s on my beat, though Wizardkitten has an excellent diary about the Republican tax raises in Muskegon.

As it turns out, our Conservative representatives gleefully stripped downtown Muskegonites of the tax free Renaissance zone. The tax free Renaissance zone was set up to help a LITERALLY demolished city center lure people and businesses downtown to have a city center again. For some reason a tax free Renaissance zone was far too libertarian for our Tea Party congress so they…

…oh who am I kidding?

They stripped the tax free zone because there were mostly just poor poeple living there, and who gives a crap about them, right? Am I right?

Of course I’m right.

The Ren zone was mostly populated by low wage earners. If you’re making 25,000 in downtown Muskegon, guess what? The Michigan Republicans raised your taxes by $1000 per year!

For those with Muskegon’s average wage of $25,000 a year, that means paying nearly $1,000 in annual income tax to the state much earlier than was promised.

Classy.

You’d think our State Senator Goeff Hansen would have given a crap…but he still gleefully rubber stamped the bill.

GLEEFULLY.

As did our State representative Holly Hughs.

Gleefully.

They GLEEFULLY voted for that bill. With gusto.

The very same bill that stripped young families of the state Child Tax Credit.

Folks are asking me all the time now, like they’ve JUST heard about it, “Is it true that we’re losing the child tax credit this year?

I’m happy to tell them who punched their young family in the gut. Happy to tell them that Goeff Hansen and Holly Hughs JOYFULLY rubber stamped the bill that is raising their taxes by HUNDREDS and in some cases a THOUSAND dollars.

Middle class taxes: raised Child tax credits for young families: scrapped Food assistance: slashed Help for the poorest citizens: retroactively slashed Pensions: Taxed Schools, police, fire departments: slashed

All to splash MORE and MORE and MORE money on the folks who don’t seem to be hiring anybody right now. But I’m sure they’re paying out some mad [...]

Michigan Republicans Poised to Slash Up to 57% from City Revenues

First off…I have no love for the personal property tax on businesses. In some cases, it can be a hardship on very small mom and pop businesses, while it’s merely a niussance to larger businesses.

That said, the state of Michigan’s has a new diabolical scheme to eliminate the tax and it’s the worst kind of dogmatic irresponsibility…as in, it’s the kind that’s going to bring ruin on many of our more industrial centers in Michigan. As in, finished. Done. Deadsville. Bankrupt. As if our cities need another boot to the head. Many of the more industrial cities get at least half of their revenue from personal property tax. Here’s an image from the Michigan Municipal League website of what some cities stand to lose in city revenue if this tax cut goes through:

River Rouge could lose 57% of its revenue. Evart, Michigan could lose 35%. And so on. This would KILL a lot of cities.

Okay, but what’s the personal property tax?

It’s a tax on equipment a businesses owns.

For some things, it makes sense to tax these things since there’s a society cost. For example, some equipment makes loud, horrible noises. Other equipment makes tons of dust. Some creates pollutants that need to be cleaned.

For other things, it’s kind of irritating…for example when it applies to furniture. For example, my wife has display cases in her store, and she pays a tax on each one that’s IN her store. There’s no societal cost, it’s just a tax on a business owning furniture.

Okay. Whatever. That’s what personal property tax is.

Now…if you think about this tax, you can start to see how a town with factories would probably have a lot more revenue from personal property tax than, say, a suburb or a town that is mostly homes and few businesses.

In some well-off residential communities such as the Grosse Pointes, personal property tax accounts for 2 percent or less of property tax revenues. In River Rouge, a Downriver industrial city of 8,000 residents in Wayne County, personal property makes up more than half of property tax revenues, according [...]

What Happens in a Bad Economy?

Politicians like to talk in abstractions.

Come to think of it, they like to argue and obfuscate in abstractions, as well. They campaign in abstractions and make abstract pledges until those abstractions turn into something tangible, like a subprime lending crisis or a downgrade from a particular private rating agency.

We spend so much time wading through abstractions that we cannot get to the meat of the issues that face us today. Enough of that.

What really happens in a bad economy? And what is the public’s role during these tough times?

Americans feeling the pinch have less disposable income–their paychecks go in increasing amounts to paying the bills and saving to make ends meet.

This means there is less overall consumer spending. Sure, certain industries do better–oil & gas, for instance–because they are pseudo-required for transportation to and from work or school.

Less consumer spending means lower demand for durable goods (automobiles, clothes, household appliances, etc.). This lower demand results in lower prices for these goods (or even a forced lower supply).

Lower prices & lower supply means businesses bring in less money and potentially less profit. This means big-time layoffs and a plethora of pink sheets.

Fewer workers and fewer wage jobs further decreases consumer spending, even though prices have lowered. This drives that vicious circle even farther, resulting in even greater job loss.

[...]

The People’s News 7/29/11

Here are today's top stories - 

FLINT JOURNAL: Group gathers to rally against emergency financial manager law – The group Stand Up For Democracy gathered panelists at a church on Thursday to speak against the state's emergency financial manager law in a townhall meeting. About 80 people gathered at Woodside Church on East Court Street near Mott Community College. State Rep. Woodrow Stanley, D-Flint, spoke against the law, saying it gives emergency financial managers too much power.  

AP: Mich. budget director wary as debt deadline nears – Michigan draws about $400 million a week from federal funds that could suddenly dry up next week if the nation hits its debt limit and cannot pay its bills.  

WWMT: Unemployment rates rise in West Michigan – In Kalamazoo unemployment rose from 8.7 percent in May to 9.3 percent in June. In Grand Rapids the rate went from 8.3 to 8.9. Battle Creek's unemployment rose from 9.2 percent to 9.6, and in the Holland/Grand Haven market the rate went from 8.4 to 9 percent.  

LSJ: GM invests $7.5M in state solar energy firm – General Motors Co.'s venture capital arm said Thursday it has invested $7.5 million in Sunlogics, a Rochester Hills-based solar energy system provider, which will lead to the creation of 310 jobs.  

FREE PRESS: State: Tuition hikes at Michigan State University, Wayne State University didn't break rule — technically – Michigan State and Wayne State universities did not go over a cap in the state budget on how much tuition could be raised without losing some state aid, state budget director John Nixon ruled Thursday.  

The People’s News 7/22/11

Here are today's top news stories…

GRAND RAPIDS PRESS: State of Change: How Michigan's business tax revenue will fall and income tax revenue will rise Down and up: How state revenue from business taxes will fall and income tax revenue will rise under this year's tax changes.

DETROIT FREE PRESS: Some say tuition hikes at MSU, WSU really surpass 7.1% cap Matt Lockwood, a spokesman for WSU, said in a written statement: "The state budget director has asked all Michigan public universities for certification that their tuition will not increase by more than 7.1% in the coming school year. We have begun that process and are confident that we are in compliance with the state's tuition restraint incentive."

DETROIT FREE PRESS: Detroit 3 automakers hope to reduce health care costs in next UAW contract General Motors, Ford and Chrysler hope to work with the UAW to lower their health care costs for active workers in contract talks that begin next week, but the union plans to resist higher costs for its members.

DETROIT NEWS: Prisons director: Security a concern in privatizing meal service Michigan's prisons director says he has serious reservations about privatizing food and other services, as called for in its recent budget. Dan Heyns said in an interview with The Detroit News he shares security concerns that Corrections officers have expressed about allowing more workers not employed by the Department of Corrections into the state's 34 prisons.

LSJ COLUMN: Schneider: Inquiry response time leaves something to be desired Average citizen Pamela Heos got blown off recently by the folks in Gov. Rick Snyder's office, and it looks like somebody will go to the woodshed for it.

The People’s News 7/18/11

Here are today's top stories -

MLive: Column: Michigan's sweeping tax changes affect just about everyone, but maybe not equitably – That's not likely to console a taxpaying couple making $55,000 who will lose their homestead credit, deductions for their two kids and will pay a higher tax rate in the future than under the old tax law. That's hardly a unique couple and in 2013 their tax bill will be $739 higher, according to the House Fiscal Agency. Now suppose one of the spouses is threatened with unemployment. And suppose Gov. Rick Snyder’s considerable tax shift from businesses to individuals indeed provides job security. Accept that on a broad scale and you can argue that $1.4 billion in higher income taxes is worth it. Snyder does that with conviction. The question is whether that $1.4 billion is being generated equitably. Emerging analysis suggests that is tougher to argue.  

Detroit Free Press: Letters: Teacher tenure reform open to many abuses – I have been an educator for more than 36 years, during which I learned that the easiest way to be labeled "difficult" and "ineffective" is to advocate for educational standards and for better working conditions. When I read the quotations of the present-day legislators in Lansing, I recognize them for the ignorant statements they are. I've met the present-day legislative type many times in my university classrooms: bigoted, small-minded, completely given over to their ideology, resistant to the smallest shred of sympathetic imagination that would unite them with human beings a speck different from themselves and their (usually) privileged circumstances. These are the people who make educators ineffective, because they refuse to open themselves up to what education offers them — an enlargement of mind and soul, not merely the "skills" or "tools" to get a well-paying job.  

Grand Rapids Press: GVSU hikes tuition by 6.9 percent, raises salaries by 1.9 percent – Grand Valley State University students will pay about $630 more for tuition, a 6.91 percent hike that falls in line with Gov. Rick Snyder's suggested cap – but is slightly above the state average. University leaders said Friday the [...]

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