Read My Lips! New Michigan Group Seeks Higher Taxes to Fix Budget Deficits
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"Read my lips -- then bust my chops on taxes" -- Headline on Detroit Free Press editorial, Sept. 4, 2009.
The Freep editorial goes on to say:
"Michigan must raise taxes now. You don't want to hear it. Neither do I. But a $2.7 billion hole in next year's budget can't be plugged by more cuts or, for the immediate future, even with big-ticket reforms, without turning Michigan into the Mississippi of the North --or worse."<
Don't look now, folks, but a monumental battle is on the horizon over how to support Michigan's governmental structure.
Not that we haven't had ongoing political strife lo these many years already.
But this latest campaign, despite being philanthropic in its approach, is certain to inflame the political landscape even more.
We're not sure in this corner whether it will add much to the civility of public discourse, what with proposals for expansion of health care bringing all kinds of fanaticism to the fore.
The political lunacy creeping across America is evident in the nearly violent reaction to the President's humdrum appeal to school kids to study harder. Wow, what if he had said something actually controversial?
In fact in the run up to the 2010 Presidential election, unless the improving economy bails us out, we may see more civil strife than has occurred since the Great Depression.
More than two dozen Michigan groups representing a broad cross-section of the state have called on Michigan's leaders to "fix the state's budget crisis by putting people ahead of wealthy special interests and reforming Michigan's finances, including making government more transparent and accountable."
The groups have launched "A Better Michigan Future" plan and began a promotional campaign.
The appeals come as revenue for the past three months have come in tens of millions of dollars lower than projected. The budget deficit is creeping toward $3 billion for the 2010 fiscal year, which starts Oct. 1.
The group's policy statement: "Michigan's $2.8-billion budget problems threaten critical public services, from fire and police protection to quality education to keeping children safe and helping the frail elderly.
The Freep suggests a laundry list of remedies:
"The state's 6 percent sales tax could expand to some nonessential services, like entertainment and landscaping, which would raise an estimated $1.7 billion. Even if the overall sales tax rate was lowered to 5 percent, it would raise more money, if expanded. Beer taxes should have been raised a long time ago. A graduated income tax, recognizing the state's growing income inequality, would go from a flat 4.35 percent to a range of 3.9 percent to 6.9 percent, depending on income. It would raise about $600 million while giving most people a tax break. Such a change takes a vote of the people. To get past the current crisis, legislators should raise the flat income tax by maybe 0.5 percent now -- with sunset provisions when a graduated tax is in place.
Doing the right thing will take courage, something in short supply among the shot callers in Lansing."
"Reform is needed for Michigan to attract businesses and jobs, produce highly-trained, well-educated workers and to avoid falling further behind," the group proclaims on its website.
"We need and expect decisive and immediate action from our state legislators," said Dr. James Hawkins, Ypsilanti Public Schools Superintendent. "We are miffed that we are days away from the first day of school and still have no idea what amount of funding we can expect. This grave and seemingly irresponsible action puts us in limbo regarding staffing and program stability."
The campaign web site, www.abettermichiganfuture.org, is cited as an access point which allows citizens to take action and help solve the state's budget crisis. The organizations, representing tens of thousands of Michiganders, includes health care, education, environment, labor and government reform groups.
The citizens groups called on the Governor and the Legislature to reform Michigan's finances by overhauling how the state generates revenue, accounts for it and spends it. The measures include:
Closing tax loopholes and corporate giveaways for companies that do not create Michigan jobs, a move that could generate more than $600 million a year. Many of the hundreds of tax loopholes have been in place for decades, without being reviewed.
Reviewing government contracts -- currently about $16 billion a year -- to save taxpayer dollars and improve efficiency, and making these contracts more accessible online for the public to review.
Implementing a graduated income tax that will cut taxes for 90 percent of Michigan citizens while providing a long-term budget solution.
Ending Michigan's status as a so-called "donor state" by reducing the federal tax burden on Michigan families and modernizing the state's tax-and-fee structure.
Ending pay-to-play politics, such as no-bid contracts, by increasing penalties against government officials who engage in it. Requiring independent audits in every state department and agency to make government more efficient.
Modernizing our sales tax system to recognize the realities of our changing economy.
We think the group has missed a significant untapped source of revenue: Michigan's more than two dozen gambling casinos that are greatly under-taxed in comparison with other states. In addition, the casinos, by extracting funds from those less able to afford it, add to social problems.
"Michigan's outdated, antiquated finances are leaving our state and families behind," said Frank Houston, Director of Michigan Common Cause.
"For too long, Michigan has struggled to make ends meet because of a broken system that fails to meet the needs of our families. We need common-sense reforms like increasing transparency in the budget process and making sure tax-breaks for large businesses are producing the jobs they promise. However, Michigan also needs large-scale reform to end the cycle of growing deficits that put critical public services in danger. Michigan cannot just cut our way to prosperity."
"Unless we reform and modernize Michigan's finances now, our families will see deficits as far as the eye can see with no way to pay for critical services that protect people and invest in our future," said Progress Michigan Executive Director David Holtz.
"If we do nothing now, our kids won't have the tools they need to compete for jobs. Our families won't have the police and fire protection to stay safe. Our parents and grandparents won't get the care they need. That's not the kind of Michigan our families want and deserve."
"If Michigan is truly committed to protecting our families, then our budget must reflect that," Ken Fletcher, Director of Government Affairs, Michigan Nurses Association said. "In these tough times, families are making sacrifices and using their creativity to get by. Michigan must support them instead of letting the free ride for the powerful special interests go on. We must come together and make changes so our financial structure is more transparent, more accountable and more responsive."
Partner Organizations of A Better Michigan Future include: AFL-CIO, AFT/MFT, ARC Michigan, Citizens for Better Care, Common Cause, Global Behavior Education, Michigan AFSCME Council 25, Michigan Association of Pupil Transportation, Michigan Citizen Action, Michigan Council on Crime and Delinquency, Michigan Education Association, Michigan Environmental Council, Michigan League for Human Services, Michigan Nurses Association, Michigan Primary Care Association, Michigan Professional Firefighters Union, Michigan State Employees Association, AFSCME Local 5, Middle Cities, PHI of Michigan, Pride at Work-Michigan, Progress Michigan, School Community Health Alliance, Small and Rural Schools, UAW Michigan CAP, UU Social Justice Network, Van Buren Legislative Consortium. ### Join the conversation
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