After happily signing countless tax breaks for corporations into law in Michigan, Governor Rick Snyder finally found one to veto. It’s one that would benefit actual Michiganders and not for-profit corporations:
Gov. Rick Snyder vetoed on Tuesday a tax cut recently approved by the Michigan Legislature, saying the measure would put too much strain on the state’s budget.
Snyder vetoed legislation that would have accelerated a tax cut approved in 2013 for those trading in a vehicle when purchasing a new or used vehicle. […]
“The bills would accelerate a gradual and agreed upon phase in of the sales and use tax relief to a degree that I believe is not fiscally prudent,” Snyder said in a news release. […]
The Senate Fiscal Agency estimated they would reduce sales tax revenue by an additional $21.2 million by 2021.
In Michigan, if you trade-in a used vehicle when you buy a new one, you’re able to subtract the value of the used vehicle from the purchase price and pay taxes only on the difference, up to $3,500. Legislation passed in 2013 started the cap at $2,000 and would gradually raise it over the course of time. Legislators wanted to accelerate that increase in order to put more cash in the pockets of the citizens of our state and boost the economy.
That, however, was a bridge too far for Gov. Snyder. He’s fine with busting the budget – and causing cuts to education and other important elements in our state budget – with massive, billion dollar tax giveaways to corporations. But a tax break that takes a paltry $21.2 million from our budget but helps average Michiganders and boosts sales of our automakers is just too much for him.
But, ya know, that’s just how he rolls.
UPDATE: An hour after I posted this, Gov. Snyder signed into a law a series of bills that will give tax breaks to corporations that will result in up to $200 million less in tax revenues every year.