Happy Cost of Government Day, Michigan!
Today is national Cost of Government Day, the celebration of which is shared by both Indiana and Michigan, whose state COGDs fall on July 15 as well. The Cost of Government Day measures the calendar date by which the average American paid off his/her share of spending and regulatory burdens at the federal, state and local level.
Michigan taxpayers must work 197 days out of the year to reach their COGD. In addition to toiling more than half of the year before working for themselves, Michigan residents have experienced an increase in cumulative taxes. From 2003-2012, Michigan taxpayers were saddled with an additional tax burden of $197.14 for each man, woman, and child – representing a cumulative tax increase of $15.65 billion.
Last year, Michigan ran a spending deficit of $1.5 billion. However, Governor Snyder’s fiscal prudence, coupled with tax reforms, enabled Michigan to cut spending to bring spending in line with revenues in FY2013. Effective January 2012, the Michigan Business Tax (MBT) was eliminated and replaced with a 6 percent flat corporate income tax. Additionally, individuals will experience a cut from 4.35 percent to 4.25 percent in their income taxes beginning in 2013.
These tax reforms, and adherence to smart spending reform, may be the answer to an earlier Cost of Government Day for Michigan in 2013.