![]() ![]() It appears Michiganders eventually caught-up to the game. ![]() ![]() And finally, roads deteriorate to the point where the only solution is to cut other programs to provide a little funding to nominally improve the roads.įor years, progressives asked the question, “What’s The Matter With Kansas?”įor me, I wondered, “What’s The Matter With Michigan?” Gut environmental regulations, leading to contaminated water throughout the state. Slash public school funding, schools falter, shutter them, and drive students to for-profit charter schools which undergo little-to-no oversight. It’s almost like the radical right wing agenda in Michigan worked exactly as planned: Slash taxes on corporations which would lead to a privatization boon. (Hat tip to Crain’s Detroit Business’ C had Livengood) Ohio is the exception since it doesn’t have a corporate tax rate, which didn’t help keep GM from shuttering its doors in Lordstown, did it? They ought to have some skin in the game.Īs the Tax Foundation highlights, Michigan has the lowest corporate tax rate per capita compared with the rest of the Great Lakes states. Businesses also benefit from a solid infrastructure. The burden shouldn’t be felt just by hardworking Michiganders. Which is why I’ve pressed that business taxes must rise a bit, too. That group supports the tax proposal because it’s a “user fee” tax, which means those who most use the roads will pay more. But some business groups are actually opposing the Republicans, such as Business Leaders for Michigan. Naturally, Republicans are also opposing Whitmer’s proposal to slightly raise business taxes. Which means they will only allow her to pass a modest tax increase that won’t begin to fix the problem. So, they’re going to block her from enacting this proposal. Michigan conservatives are up in arms over the proposal, of course, because they want Whitmer to fail. This is the principle on which the nation’s roads and rails were funded for decades until an increasing aversion to hiking gas taxes led to budget gaps - and potholes. Those who use the roads should pay for them, rather than relying on the general taxpayer to subsidize their driving. There is a reason governors - and not just Democrats - keep returning to gas taxes as the way to finance public infrastructure. The Washington Post’s editorial staff has taken notice of Whitmer’s proposal, and applauds her strategy: So, Governor Whitmer’s trying to do that in order to save Michigan.īut as I also asked on the podcast, what’s the alternative? What’s not smart is to ignore the situation, or to keep dealing with our bad roads right now.įormer Republican and his Republican legislature raised the gas tax a few years ago, but it only served to put a band aid on the wound. They’re trying to find ways to help offset the cost, and that’s smart. Which is why it was brilliant for the governor to include a rise in the Earned Income Tax Credit, and why it’s equally brilliant for Democrats to propose a bill to raise the EITC even higher than Whitmer’s proposal. The tax really won’t hurt rich Michiganders, but it will affect the rest of us in a negative way. Laurie Pohutsky correctly described it, the proposed tax is regressive. As I stated in my weekly podcast, I’m not crazy about Governor Whitmer’s 45-cent tax increase either. ![]()
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