Taxes, energy and the economy were the main topics of conversation as Congressman Mike Rogers (R-Brighton) chatted with a cross-section of community leaders over coffee at the Oxford Big Boy Monday morning.
‘If you’re going to give me money to stimulate the economy, then just decrease my taxes and I promise I will stimulate the economy and I will save,? said Pastor Dave Gerber, of Oxford. ‘I will have a retirement and be less dependent on government when I’m 120 ? when I can afford to retire.?
Gerber was quite upset about how the new Michigan Business Tax is impacting small business owners.
‘My friends who own businesses are getting the crap beat out of them,? he said. ‘I’ve talked to several business owners who have been socked with a 200 or 300 percent increase in their tax rate. It’s killing them.?
Rogers said he ‘passionately? disagrees with the state’s new business tax and he personally let the politicians in Lansing know it before they approved it last year.
‘You cannot tax your way to prosperity,? he said. ‘There is no bigger burden to that small business than regulation and taxes.?
All more taxes do is hurt existing businesses and drive potential ones away, according to the congressman.
‘You cannot put more weight on small business in a bad economy, let alone a good economy, and wonder why businesses won’t come here,? he said.
Rogers said state officials ‘ought to be finding ways to make it so attractive businesses can’t not come to Michigan.
To that end, ‘everyone in the business community,? not just the movie industry, should be getting tax relief.
For those worried that tax breaks would mean less money in the state’s coffers, Rogers said the government would ‘make it up with income tax.?
‘When people are working again, you’ll get it back,? he said.
But the politicians in Lansing also have to start working on shrinking the size of state government and its budget.
‘State government’s going to have to be smaller,? Rogers said. ‘Seven years ago it was $38 billion. I think last year’s budget was $42 billion. My math is bad, but that’s not a cut.?
The same is true in Washington D.C.
‘The federal government needs to live within its means,? Rogers said. ‘We haven’t done that yet.?
That’s why the congressman is hoping the voluntary flat income tax bill he’s cosponsoring will help make it happen.
Each taxpayer would be able to choose whether they wish to be taxed under the ‘old system? with its ‘thousands and thousands and thousands of pages? or pay a single, flat rate outlined in one page.
Rogers believes most Americans would choose the flat tax option and by ‘voting with their feet,? they would end up changing the tax code.
The amount of the flat rate is still being worked out, but Rogers said it’s ‘somewhere between 17 and 22 percent.?
Current income tax rates range from 10 percent at the low end all the way up to 33 percent.
Considering there are ?20 million working Americans that don’t pay any federal income tax at all? while the ‘top 5 percent pay 60 percent of all the taxes,? Rogers said, ‘You have a distorted system already.?
‘That’s why I think the flat tax is the fairest system,? he said. ‘Everybody pays a fair share ? no wiggling, no finagling, we know what it is at the end of the day.?
Oxford Village Councilwoman Teri Stiles told Rogers about the 23 home foreclosures the village has experienced since January of this year.
‘What does the federal government intend to do to help these people?? she asked.
Last week, the House passed a bill which would allow people ‘struggling? to stay in their homes to refinance with cheaper loans guaranteed by the Federal Housing Administration (FHA).
Roughly 500,000 homeowners facing default, including many who owe more than their houses are worth, are the target of this legislation, which could substantially lower borrowers? monthly mortgage payments.
Mortgage holders are not be obligated to participate in this program, however, Rogers believes a majority will because the last thing they want to do is take back property.
Foreclosures typically result in losses of 50 percent or more for lenders.
Should this bill pass the Senate and be signed by the president, who’s indicated he will veto it, the program would only be available for homes that are ‘owner-occupied.?
Rogers said it’s not designed to help ‘speculators? or ‘developers.?
With regard to energy issues and rising oil/gasoline prices, Rogers doesn’t believe eliminating gas taxes and oil subsidies or taxing oil companies? ‘windfall profits? will help.
‘None of those things are going to bring down our oil prices. Not one of them,? he said. ‘We can’t mandate or control oil prices.?
Instead, Rogers supports the idea of declaring the U.S. ‘energy independent? from foreign interests by a certain date.
Right now, the U.S. is spending more than $120 per barrel for oil from countries like Saudi Arabia, Venezuela and Russia, which by the way is rebuilding its once powerful military.
‘We have more (of) what we would know as KGB agents in the United States today than we did at the height of the Cold War,? Rogers said. This is because the Russian government has more money to spend thanks to oil sales.
Rogers believes the U.S. can make itself energy independent taking a ‘multifaceted? approach, which includes exploring domestic oil sources, supporting research of alternative energies and relying more on nuclear power.
‘Eighty-five percent of France’s power is nuclear power and they’ve had it that for 40 years,? said the congressman, noting the U.S. Navy’s used nuclear energy to power its vessels for 50 years without incident.
‘It’s the most efficient way to produce energy,? the congressman added. ‘It’s safe. We have to do it.?
For transportation, Rogers believes ‘plug-in? hybrids are ‘the way to go in the future.?
These cars will have ethanol or gasoline powered engines, but the first 40 or so miles of a trip would be powered by electricity from a rechargeable battery drivers? plug in when the vehicle’s not in use. ‘That would make a huge difference,? he said.
Rogers noted that General Motors is working on what could become the first mass-produced car to run on a lithium ion battery. It’s called the Chevy Volt and it would be made in Michigan in 2010, he said.
If the U.S. is going to break free from its current energy woes, Rogers said, ‘we have to be sensible? and take a ‘holistic view,? otherwise things are only going to get worse.
‘You can’t take $3.50 out of someone’s pocket for a gallon of gas every time they drive and not have it impact the economy,? he said. ‘Our economy isn’t built on $3.50-a-gallon transportation.?