Tax Policy Changes – Jobless – Unemployment Rates Rise In Michigan Why?

Jobless Unemployment

Higher taxes on citizens and small businesses through the tax policy changes implemented out of Lansing are a just some of the reasons economic growth and jobs have been hindered in Michigan. These changes have been beneficial to big business only and not all the citizens or small business owners.

Most analysts see the unemployment rate inching up while a few see it remaining steady. While factoring in discouraged adults and others working part-time who would prefer full-time work, the real rate is likely around 14.4 percent or higher with the 20 to 25 percent range not out of the realm.

Increased prices for goods and services, food cost along with energy cost, fuel (gasoline), and home heating all have hindered growth and spending by consumers. The Small business owners and consumer spending drive the economy and without it no growth or jobs.

Other factors that have contributed to the problem we face is higher taxation through these tax policy changes. When Michigan’s legislature reformed the Michigan Business Tax for Big Business they replaced that lost revenue by balancing it on the backs of Michigan taxpayers through the pension tax.

To replace the lost revenue on the elimination of taxes that businesses pay on equipment they balanced that move by eliminating certain tax deductions in the state income tax code.

While I have seen and heard stories from many Michigan citizens after filing their tax returns for 2012 the effects of these changes are very evident. My tax accountant explained this to me when he did my tax filings. He said that these changes effect the ones who could least afford it most such as those on fixed incomes, retirees and the poor.

In my case with everything being pretty much the same from the prior year my return was about $400.00 less than the previous year.

These tax policy changes were all made under the guise of a more friendly business environment in order to create jobs. Myself it would appear to be favorable to only those big business owner supporters of our elected politicians who donate to their political campaigns.

Lobbyist and Special Interest seem to rule the world of politics in Michigan and not we citizens who they were elected to represent. So the question is how do “We the People” change this mentality with our elected leaders?

The only conclusion I can think of to fix this problem is to vote them out of office and keep voting them out until we get the true representation we “deserve and expect” when we elect them to “serve” us!

The state announced Thursday that Michigan’s seasonally unadjusted jobless rate hit 9.7 percent in January, up from 8.9 percent in December. When adjusted for seasonal changes, the rate of 8.9 percent in January was unchanged from December.

Michigan, 9.7 percent, compared with 8.9 percent.
Ann Arbor, 5.3 percent, compared with 5.2 percent.
Battle Creek, 7.4 percent, compared with 7 percent.
Bay City, 9.4 percent, compared with 8.3 percent.
Detroit-Warren-Livonia, 11.3 percent, compared with 10.2 percent.
Flint, 9.9 percent, compared with 9.1 percent.
Grand Rapids-Wyoming, 6.6 percent, compared with 6.3 percent.
Holland-Grand Haven, 6.7 percent, compared with 6.4 percent.
Jackson, 8.8 percent, compared with 8.2 percent.
Kalamazoo-Portage, 7.7 percent, compared with 7.3 percent.
Lansing-East Lansing, 7.6 percent, compared with 6.8 percent.
Monroe, 8.9 percent, compared with 7.6 percent.
Muskegon-Norton Shores, 9 percent, compared with 8.3 percent.
Niles-Benton Harbor, 9.7 percent, compared with 8.8 percent.
Saginaw-Saginaw Township North, 9 percent, compared with 8.3 percent.
Upper Peninsula, 10.3 percent, compared with 9.4 percent.
Northeast Lower Michigan, 13.7 percent, compared with 11.9 percent.
Northwest Lower Michigan, 11.2 percent, compared with 10 percent.

Source: Michigan Department of Technology, Management & Budget. 

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