Hood Research
Theo Broughton & Reggie Crawford

"People would do better if they knew better."

Republican Tax Policy Endangers State Growth


Republicans across the state of Michigan are refusing to support a proposed fuel tax increase that supposedly will raise $2.5 billion. This is after the same Republicans pushed through an increase in the cost of an operator’s license plate for the same reason; to fund the repair of the worsening roads. Consumers don’t like either the now existing tax increase (called a fee) nor the proposed fee increase which may be technically a tax.

The linked article by the Detroit News wrongly asserts that Michigan citizens are underpaying taxes as compared to income since the 1970’s. This is poor science. Based on several factors, individuals pay more now in taxes than ever before and get less in return for the money. Contrast that with business that now pay less in taxes than they have in a very long time.

The constant reduction in business taxes has led to this point where the state cannot afford to pay for services. The state of Michigan has now become what has been used to describe Detroit – broke. The same actions that the media has reported on regarding other very conservative states now affects Michigan. A very conservative state. Republicans have broken the revenue machine. The business tax cuts have not performed as promise. The state continues to lose population and jobs are being lost in the state in record amounts when the national economy is supposed to be strong and stable.

It does not appear that Governor Whitmer, other Democrats and certainly not the Republicans will mention the need to reverse the business tax cuts to fund future - much needed state growth. The state is stagnating. Without the revenue that has been lost, Michigan will wither even as Detroit prospers.

Could this be one of the reasons for gentrification in Detroit?

Original Article


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