KEY LEGISLATION:
Governor Signs
Post-Labor Day School Bill
After months of intense lobbying of both the legislators and Governor
Jennifer Granholm, the retail and tourism industries finally pulled
out a
victory on the post-Labor Day school issue. MRA and numerous other business
groups coordinated a comprehensive lobbying strategy that ultimately
led to
the issue’s first-ever passage from any chamber of the legislature,
and
eventually persuaded the governor to sign the bill as well.
Granholm held her cards close to the end. The education community opposed
the proposal, but the state’s economic woes no doubt played a role
in
winning her support. Supporters of the law argued that pushing the start
date past Labor Day would boost end-of-summer tourism.
Under the new law, schools must not resume classes until after the Labor
Day
holiday. They must make up the hours of instruction either by adding
minutes
to days or adding days during the school calendar. The law takes effect
for
the next school year.
Fair Tax Idea
Still Kicking
The idea of a so-called “Fair Tax” revamping the state’s
tax structure
surfaced in the spring and quietly faded into the background. This fall
the
issue is once again under discussion, at least by House Tax Policy Chairman
Fulton Sheen (R-Plainwell).
In an interview with MIRS News this week, Sheen said that the plan,
which
calls for eliminating the state’s income tax, Single Business Tax
(SBT) and
property tax in favor of a broader, 8.58-percent sales tax, is the
“solution to fix Michigan’s economic situation.”
The main difficulty Sheen faces is selling his idea to the rest of the
Republican caucus. The plan may prove to reduce overall tax burdens,
but on
its face it will be challenged, as it extends the sales tax to services
and
other transactions that are currently not taxed. Businesses such as
golf
courses, for instance, would be required to charge tax on greens fees
under
the proposal.
Democrats are also questioning the implications this plan would have
on the
poor, who may have trouble paying the higher and more extensive sales
tax.
Not so, says Sheen. Moving to the Fair Tax would benefit consumers in
so
many other areas that it would more than make up for the change. Sheen
says
that if Michigan adopted the change, it would be the only state in the
nation without income, property and business taxes, making Michigan
easily
the most attractive place to locate a business.
Organized Labor
Begins Minimum-Wage Push
The AFL-CIO indicated that organizations supporting an increase in the
Michigan minimum wage would begin meeting next week to begin the process
of
putting a ballot proposal on the November 2006 ballot. The group’s
goal is
to get a petition initiative begun by January.
The Association of Community Organizations for Reform Now (ACORN) and
the
Democratic Party make up the majority of the coalition. ACORN was recently
successful in winning a $1 minimum wage increase in Florida, and the
group
is reportedly seeking a $2 increase in Michigan.
Fieger Back in
Politics
Failed gubernatorial candidate Geoffrey Fieger announced he will seek
the
Democratic nomination for Attorney General next year. The bid is an
attempt
to unseat Republican Attorney General Mike Cox.
Cox currently has a lawsuit against Fieger related to a $450,000
contribution Fieger made for a series of TV ads against Supreme Court
Justice Stephen Markman, in which Fieger allegedly took too long to
disclose
his financial involvement. Whatever happens, Fieger’s return to
election
politics will no doubt spice up the nomination process.
KEY BILL INTRODUCTIONS:
No new introductions at this time.
To view the content and current status of retail-related
bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax and
would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
Specific comments or questions regarding this bulletin
should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
