A brief note from one of Michigan's senators below:
Senator Stabenow announces legislation to cut taxes for Michigan families
U.S. Senator Debbie Stabenow announced legislation that she is cosponsoring, the Middle Class Tax Cut Act of 2011, which would cut taxes for Michigan families. Unless Congress acts this month, a two-percent payroll tax cut for middle-class families will expire at the end of the year. The Middle Class Tax Cut Act of 2011 would not only extend the current two-percent payroll tax cut but would also boost it to 3.1 percent, increasing the take-home pay for Michigan families. Passing this legislation would mean the average Michigan family would take home approximately $1,400 more next year than they would if Congress does not act. The Senate is expected to vote on the measure later this week.
There may be lack of support for the legislation; as a recent poll indicated only 13 individuals remain in Michigan who may qualify as middle income.
............a fella has got to have a little fun in this crazy world, eh?????????????? Perhaps I'll buy an Ipad with the extra cash...................
The senator's message is factual.
Take care,
Catch
Comments
Yeppers, Anna, unemployment is horrid Up in Michigan. Lot's of very bad headlines. Datwah's probably going to have to go bankrupt or have the gov appoint a mgr with more power than a bankruptcy judge - legacy costs are hideous and the unions are as 'hardcorps' as they come.
Auto's rehiring, albeit slowly, and ag and tourism are picking up. Our problem right now is the legislature has republican majorities with a republican gov and there are religinazis setting much of the legislative agenda. Hell, Snyder has actually been the voice of moderation. That said, most of these republicans, when not thumping bibles, are still touting supply economic idiocy. There are probably times for supply side stuff, but since junior's tax pkg, those days are long gone. We need demand side stimulation - now as then.
In Michigan, as elsewhere, if they'd simply focus on education (all levels for all peoples), the environment (protecting, nurturing and leveraging) and infrastructure (all varieties - air, land, water), all the rest of the problems would mostly disappear.
Obama had a chance with the $1T stimulus and the dem's mostly pissed it down the drain buying fish for folks, rather than teaching them to fish. I said then that if 100% was devoted to green infrastructure we wouldn't be in this mess.
Cretins - both houses.
peace,
rono
Oh, and unemployment nationwide is still around 20 freakin' % and the misery index is over 30 so WTF.
peace,
rono
beside the unemployement status and 60% of MI residents are 'pissed off', who do you think will win MI in 2012? gop or obama?
when MFO participants say to keep a certain percentage of monies in
cash do they mean physical cash at home under mattress or in a money
market fund at 0.08% interest ?.
thanking you in advance
regards
circa33
YES ! Cash at home, ready,drawable cash at the local bank/cu and sometimes cash parking at a fund company; at least for this house.
Catch
Rono mentioned a few things about dear, old Michigan.
You must note what I write attempts to find me in the middle of the political turf wars of today, which find the zealots of both major parties hanging off the ends of the weak tree branches, in my opionion.
Michigan went to the Repubs in the last election. "They" are attempting to run the state like a business. There can be merits to this thinking for some aspects.
However, it seems odd that they are attempting to attract business to MI with raising taxes on families and those on pensions.
As to raising taxes on pensions; MI did not have taxes on pensions until a household's monies were above $92,600. There is now a very strange tax plan in place that causes most pension monies to be taxed; but it depends on one's age bracket, as established by the new law. Most families; at least none I have asked; are aware that their taxes will also increase, as all of the attention in the media has been directed at the "pension" area. This magic comes from eliminating and/or reducing credits for children claimed on one's MI tax form and/or exemptions, among other areas. While the tax rate of 4.35% remains in place and not increased on taxable income, the amount of income that will be taxable for the 2012 goes up...........bingo ! a tax increase.
The big reason for these changes...................help businesses move to MI and provide a better tax climate for a reported 95,000 small businesses in MI. I have no problem with helping small business stay alive; but I don't find many companies would choose to "move" into this state. So, the old and nasty business tax structure was junked and the new plan put in place............but, opps; tax revenue will now be lost for the new plan; SO, the new tax law makes up this shortfall by establishing a pension and family tax plan. One may as well stand at the state border with a sign begging companies to move to MI and stating that one is giving the money our of their households to help............please move here !!!
This plan is a bunch of crap for what I see.
Although one may be assured that some backtested and perverted computer program has guaranteed success. Ya, right !
I noted to the Gov, Lt Gov and Treasurer, that with the monetary condition of many families and pensioners in this state; that for every dollar the state takes away in taxes; is also a dollar not spent by the consumer. So, while small business taxes may be lower and more simple; this will not cause these businessed to hire more folks when less money comes through the door. The PLAN will indeed alter how our mone is spent.
I also noted, as I had done with the previous Dems in power; that the real plan would be to advertise to those on pensions to move to MI from other states, especially the very high income tax states.
There is just too much I could express, but I don't have that much time.
Lastly, this new tax plan passed only with the tie breaking vote of the Lt. Gov.
Take care,
Catch
Could be 99% are pissed about something, the other 1% have already journeyed to Arizona or Florida for the remainder of the winter months.
I have not a clue about the 2012 pres. tally for 2012. I suspect the outcome will be closer than the usual Dem leaning.
I'm voting for myself in 2012; so neither major party will have my vote.
Catch
Personally, I consider CDs cash - there is no money at risk, you know in advance what it is, and will be, worth at any instant. It is liquid, albeit typically with a penalty. I don't regard it as an "investment", and thus it is cash. Now take that a couple of steps further.
Certainty of future value doesn't necessarily mean that you know the future dollar amount; it could be a variable rate CD, where the rates are based on, say, Fed funds rate. No dollar certainty there, but a pretty clear formula. And if I needed absolute numeric certainty for something to be considered cash, then my bank savings account wouldn't qualify - I don't know from one day to the next exactly what interest rate my bank will set. But I have a pretty good idea.
I regard savings bonds as cash - they're very much like CDs. Like some brokered CDs, you cannot get your money out at all for a period of time (for savings bonds, it is one year). Nevertheless, it is cash in the sense that there's nothing at risk, that you know (at least formulaically) what the asset is worth, and at some point it will be liquid. I do not regard treasuries that way, because you cannot redeem them prior to maturity, and the value is at risk - the market value could go up or down.
Then there's foreign currency. You suggested that if one has cold, hard cash under a mattress, then it is, well, cash. What about my few bucks worth of Bhat, of RMB, etc. that I have physically lying around? It's cash, it's physical, and I know exactly what it is worth - I just have to go a few thousand miles to be able to spend it and get that exact worth. I think that's cash, too. And if that's cash, so are foreign currency denominated bank accounts, CurrencyShares(R), etc.
A lot of people use M*'s Instant X-Ray tool to get a breakdown of their portfolio. That includes the cash inside of mutual funds as cash. For example, M* reports that Templeton Global Bond fund holds 44% cash. That's what will show up in the instant X-Ray. In theory (I haven't gone through the fund report), that represents short term (like MMF) holdings of the fund in various currencies. So if people are using M* X-Ray to determine their cash holdings, it is including all cash in their portfolio, including cash they hold indirectly.
In short, there's cash and there's cash. There's the cash you spend (what I think you had in mind with your question), and there's cash from a portfolio behaviour perspective. Cash is an asset class. It behaves differently from bonds, from equity, from collectibles, etc. Include everything above, and what you are seeing is cash as an asset class - how much of one's portfolio behaves like cash.
Based upon my understanding of the current "tax cut" program, which reduces the SS pay-in; the "promise" is that the shortfall of input cash will be removed from the "general fund" and placed back into the SS program.
Ironically, the general fund monies for years has been "borrowing" money from the SS program.
I really do believe that more than flouride is added to the public drinking water in D.C.; and even more troubling to consider what is in the "bottled" water presented for consumption.
Regards,
Catch
Hi Hank. Extending the payroll tax to me seems like a very sensible thing to do to help out middle income people. You know the reason - give people more to spend to stimulate the economy. If the economy is stimulated, more jobs and more people paying payroll tax. If we don't do that, there will be even less going into these entitlement programs because we will likely fall into another recession or God-forbid, a depression. That would likely drive the SS deficit up plenty more than this tax break will.
And lets face it, there is a bigger tax break here. Anyone making over the $96000 (something close to that) already has a huge tax cut that we/I don't get. They pay zero% on everything over that amount. So, I pay 100% on all my wages and some pay on <10% of theirs... Sorry, off on a tangent.
I think you are referring to the payroll tax income limit. I believe the limit is now $106,800. I think the limit should be much higher. Those asking for flat tax never happen to ask for flatness over here.