Sales tax proposal symptomatic of poor government

Published 9:29 am Friday, March 27, 2015

On May 5th, voters across the state will be presented with a ballot proposal which seeks to increase the state sales tax from 6 to 7 percent in the name of fixing the roads. According to the House Fiscal Agency, this tax increase is expected to generate an additional $2.1 billion in state revenue for the 2015-2016 fiscal year, should it be passed. However, only $367.8 million of that $2.1 billion will be distributed to state and local road agencies in FY 2015-2016. That’s only 17.5 percent of the total tax increase that will go to roads in the first year, for those who are counting.

Study the content and structure of this proposal and you will find that earmarks abound for budget items other than roads. Schools, public transit, local governments, the DNR, and the state general fund all stand to gain millions. In addition, hundreds of millions of dollars of the new revenue will be used to more than triple existing tax credits for low income families.

Examine the circumstances surrounding the creation of this proposal and you will find that a last minute conglomeration of bills were rushed through a lame duck legislature in the wee hours of the morning prior to the legislature disbanding for the year, in the name of getting “something” done. This road funding “solution” was not properly vetted or examined for unintended consequences, several of which have already been identified.

If allocating additional funding to our roads is of critical importance, why does our current spending as a state not reflect this? We subsidize Hollywood to the tune of $50 million per year. We’ve pledged $261 million in state funds to pay for 58 percent of the new Red Wings stadium in Detroit, despite the fact that the owner of the team is a billionaire. Our antiquated Prevailing Wage laws cost us $250 million per year in the form of exorbitant construction costs. A recent audit of MDOT by the Auditor General’s office found that MDOT has failed to claim warranties for flawed road construction projects, costing the state hundreds of thousands of dollars.

In 2014, the State House passed a road funding package that allocated $450 million to the roads without raising any taxes. This package included many common sense reforms, such as applying late vehicle registration fees to roads instead of to the state general fund. It is unconscionable to me that basic reforms such as these have been scrapped in favor of asking for $2.1 billion in additional taxes.

Our State Representative, Aaron Miller, and State Senator, John Proos, both publicly oppose this proposal. Could it be that they too believe there are ways to better prioritize existing revenue?

If this proposal passes, we will have failed to require our government to spend our tax dollars responsibly and efficiently. Join me in demanding better by voting NO to Proposal 15-1 on Tuesday, May 5.

Devin Schwartz

Sturgis