Vincent from Bloomfield Hills, MI

Faces of the Federal Budget

Here’s how it works. I’m a business consultant, or I was before I was retired. And I’ve been in literally hundreds of organizations, manufacturing for the most part, but a lot of other kinds too. It’s been my experience that what creates jobs is more demand for a company’s products or services. That’s what creates jobs because now they need to satisfy that demand somehow. Normally they’re going along at a certain level and now they have to operate at a higher level and so that’s where the additional staffing and sometimes investment for new equipment and so on comes into play. If you just cut the taxes… there’s no reason for a business person to buy anything with those taxes if their demand is steady or declining. Why would you do that? There’s no reason to. So, what would you do with the money? Well, you put it in the bank or buy something with it, but you’re not going to ramp your business up because you got a tax cut. That’s just not how business works.

Where I did get hurt is that we used to have what was called the Homestead Tax Credit. Every year, we would get an amount of money back which kind of defrayed your local taxes, like school taxes and that kind of thing. For me it’s been $1200 or so per year. …Well, guess what? That disappeared. And the reason it disappeared is that revenues were required to make up for giving the businesses a tax break. The revenues had to come from somewhere. So where are they going to come from? They’re going to come from the people. They’re going to come in the form of taxing their pensions or eliminating this tax credit, or I don’t know what else. That’s what impacted me directly. Me and every other homeowner in Michigan. That’s exactly how they made it – they put their hands in the people’s pocket. They picked the pockets of the people.

Vincent from Bloomfield Hills, MI | Map

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