By By JOHN EBY / Dowagiac Daily News
At Swiss Valley Ski Area near Jones Monday they were wondering why the Michigan Legislature expanded the 6-percent sales tax to skiing, but not golf.
"We must have more legislators who golf than ski," said Jamie Stafne, Swiss Valley's marketing director.
"Unfortunately," she added, "it will raise our 2007-2008 ski season prices. We encourage skiers to take advantage of the season pass option which is currently available for purchase and unaffected. Our ticket prices have held pretty steady for the past few seasons, but this increase is not our choice.
"Again, I imagine, we will see an increase in season pass sales, which are available now and always offer the most affordable option for people who want to ski. Ski areas are a large part of the revenue-producing recreation business in Michigan. We hope this tax doesn't negatively impact our winter tourism," she said.
Lawmakers also raised Michigan's income tax rate from 3.9 percent to 4.35 percent in addition to adding sales tax to services (see page 2 for a list).
One which left people scratching their heads is phrenology, which is the study of the conformation of the skull as an indicator of mental faculties and traits of character.
Raising the state's income tax will raise an additional $765 million.
The 6-percent salse tax is expected to generate $613 million in the 10 months remaining in the budget year after it takes effect Dec. 1.
Cass County's state Sen. Ron Jelinek, R-Three Oaks, chairman of the Appropriations Committee, voted for both measures.
"For nearly three weeks we have been working day and night at the State Capitol to come to a solution to the state's budget crisis, and I am pleased we have finally reached an agreement. However, I am deeply disappointed in the sales and income tax increases that were imposed on Michigan residents by Democrats eager to increase state spending," commented Dowagiac's House voice, state Rep. Neal Nitz, R-Baroda. "We did pass some reforms that will improve government efficiency down the road, such as teacher health care and retirement reform, yet these reforms do not have much immediate impact on our state's budget situation. While I could not support a tax increase that I know will have a negative effect on so many of Michigan's residents, it is a small victory that we achieved these reforms before raising taxes, possibly preventing an even deeper tax increase on residents."
Cass County's other voice, state Rep. Rick Shaffer, R-Three Rivers, said Monday, "I'm very pleased that the full shutdown of Michigan's government has been averted, and I am pleased with the long-range reforms that have been incorporated into the agreement that will help streamline our government well into the future.
"Certainly it is a big disappointment that as part of the budget resolution, a major tax increase has been incurred on the backs of our hardworking families. I could not support this tax increase because I believe more reforms and spending cuts could have been enacted. Yet thanks to the approval of a continuation budget, we now have an opportunity in the weeks ahead to enact further reforms that will hopefully offset the painful impact of the higher income tax rate. This is not over, and I will do what I was charged to do and fight to protect residents' dollars."
State Rep. John Proos, R-St. Joseph, said, "The reforms passed this weekend by the Legislature do not go far enough, and I could not in good conscience vote for tax increases without further, more permanent reforms. Yet we have forged an agreement that avoids the unnecessary and unthinkable act of a government shutdown. This agreement means that families across Michigan who rely upon vital state services can continue to receive these services without interruption, including the operation of the M-63 drawbridge over the St. Joseph River. Without this agreement, the thousands of residents who rely on this artery would be forced to find alternate routes to work, school and home."
State Rep. Tonya Schuitmaker, R-Lawton, said, "We have made strides in our efforts to solve the budget crisis, and I am pleased we were able to reach an agreement that avoids a government shutdown. However, the reforms approved are only a small step toward lasting, permanent government reform. I am disappointed and saddened that the major factor in this agreement was a tax increase. I know there is room for more significant structural reforms for our state, and by listening to residents in my district I know a tax increase is only going to burden already struggling residents and impede economic growth"
It is estimated that a single individual making $42,000 a year will pay $173 more in taxes, a married couple $158 more.