Prop. 1 on the August 5th Primary ballot
Any thoughts for or against Prop 1? Here is the text of the proposal:
Reduce the state use tax and replace with a local community stabilization share of the tax for the purpose of modernizing the tax system to help small businesses grow and create jobs in Michigan.
2. Require Local Community Stabilization Authority to provide revenue to local governments dedicated for local purposes, including police safety, fire protection, and ambulance emergency services.
3. Increase portion of state use tax dedicated for aid to local school districts.
4. Prohibit Authority from increasing taxes.
5. Prohibit total use tax rate from exceeding existing constitutional 6% limitation.
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Proposal 1 - 2014 Michigan Primary
Quote:
APPROVAL OR DISAPPROVAL OF AMENDATORY ACT TO REDUCE STATE USE TAX AND REPLACE WITH A LOCAL COMMUNITY STABILIZATION SHARE TO MODERNIZE THE TAX SYSTEM TO HELP SMALL BUSINESSES GROW AND CREATE JOBS
The amendatory act adopted by the Legislature would:
1. Reduce the state use tax and replace with a local community stabilization share of the tax for the purpose of modernizing the tax system to help small businesses grow and create jobs in Michigan.
2. Require Local Community Stabilization Authority to provide revenue to local governments dedicated for local purposes, including police safety, fire protection, and ambulance emergency services.
3. Increase portion of state use tax dedicated for aid to local school districts.
4. Prohibit Authority from increasing taxes.
5. Prohibit total use tax rate from exceeding existing constitutional 6% limitation.
Should this law be approved?
All week I have been familiarizing myself with local candidates, and the proposals for the upcoming primary. I am still confused about Proposal 1. I read the newspaper articles [[most seemingly very in favor of this). But what they say about it seems completely different than what the actual language says. The proposal makes it sound they want to reduce the use tax...all of the articles talk about how it gets rid of the business personal property tax. Then reading that the "local" authority would be a single "local" entity whose borders are the same as the state [[a state-wide "local" authority...mhmmm) seemed like a work-around for something...though it is not clear why a "local" authority is necessary. On top of those things, my knee-jerk reaction to all of the language about helping small businesses and creating jobs is that it sounds like a conservative talking...but then I see it has bipartisan support [[though those few I see against it have all been Democrats). Full disclosure...I consider myself a liberal, so sounding conservative isn't necessarily a "good" thing for me.
If I were voting today, I'd probably vote "no" because it seems like supporters are using a bunch of catch-phrases [["modernize!", "help small businesses!", "create jobs!") to mask a business tax cut. I'm not necessarily against business tax cuts in good times...but I don't want more cuts to spending, and cutting taxes without a plan to generate new revenue seems like it would lead to spending cuts [[or finding ways to get money from taxpayers). But I have a feeling I must be missing something, and I don't want to vote one way based on faulty assumptions.
Does anyone have a particularly strong opinion about the proposal? Is there a neutral resource that outlines the pros and cons of this proposal?
Links to articles I've read are below:
http://www.freep.com/article/2014060...ON01/306080051
http://www.detroitnews.com/article/2...ON01/307280005
http://www.freep.com/apps/pbcs.dll/a...=2014307250011
http://www.freep.com/article/2014073...rial-equipment
http://www.detroitnews.com/article/2...ises-questions [[only one containing mostly criticism)