Taxation

• Freeze property taxes at age 67.  This will ensure that small townships are not harmed.  If you eliminate the tax for seniors, small townships will end up with half the revenue they need.  But a freeze avoids this and provides time to adjust or to allow the increase in property values to make up the difference.

• No capital gains tax on transfer of farms to a family farmer.

 

If we are really serious about reducing income and property taxes, like moving school funding out of the property tax, we need to start thinking about how we earn revenue from the AI boom.  One way to do that is to assess a royalty on the AI information that is processed in Michigan.  Happily, the expense of this royalty would be spread out among the global AI consumer.

• Assess a micro throughput royalty on petaflops of data going through data centers – a Super Computing Royalty.  The royalty would be shared among the Township, County, and State.

•This would be a 1/10th of a cent royalty on every petaflop of usage at data centers. 

•While year one for a 1 GW data center would be $30,000, that number would increase to $300 million by year 15 due to increases in data processing speed in chips.

•If we had 100 data centers, revenue to Michigan would be $30 billion.

•The Petaflop royalty will allow Michigan to enjoy the benefits of the AI Boom and lower property and other taxes.

​

 

Taxing the energy used by data centers is a fool’s errand.  Data centers will become more and more efficient and that number will only go down.