Over 50 people sat patiently for 1 1/2 hours to hear a very discouraging discussion by a staff economist on the state of Michigan finances. State Representative Pam Byrnes moderated and helped to field questions.
Scio Church & Wagner
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Sadly, this fall’s budget-setting drama in Lansing promises to be only a warm-up for more catastrophic circumstances during the next couple fiscal years. Andy Dillon, Michigan’s Speaker of the House, was recently quoted as saying this: The real fight is next year, this is all child’s play. …Next year will be worse. This time around, Michigan’s federal stimulus dollars helped balance the state’s budget, and most of these funds won’t be available next year or the year after.
Total revenue is insufficient. Michigan’s flat rate state tax, which already burdens the working poor, brings in too little. As a result, during a very difficult economy our public services get tossed onto the chopping block at the very time they’re most needed.
State tax reform which institutes a graduated tax structure can provide some relief. While the middle class will likely pay about the same in state taxes and the working poor presumably less, this will allow the Michigan’s revenue stream to improve, overall. It may even allow for some reduction in the state’s business tax.
I agree with the previous comment about a graduated income tax. The revenues to the state are simply not enough to fund essential services, especially in the areas of human services and education at all levels, from pre-school to college. This is one of the reasons that our local city and county governments fund human services out of our general funds. It would require a vote to institute a graduated tax, and would people understand that it would benefit most of them? Or would they drink the kool-aid that all taxes are bad?
It depends on which kool-aid flavor you are served.
Taxes are good if 1) someone else pays for something you get or 2) if you pay in conjunction with others for something that you might not be able to get on your own. Taxes are bad if 3) you pay for something that someone else gets or 4) if someone else pays for something another person gets but you don’t get any.
JCP — Can you explain how you would apply this approach to government subisdies? How would you like to see it impact state or federal funding in diverse areas such as mass transit, public roads, Medicare, food stamps, public schools, fishing & hunting, university research, homeless shelters, rent assistance (Section 8), and services for the disabled?
It’s simple, really. If there is a proposed tax that is thought as in categories #3 or #4 by some taxpayers, then in order to get these taxpayers’ support, it would be necessary for the proponents of the tax to persuade these taxpayers that the tax is in category #1 or #2.