News and analysis from The Center for Michigan • http://thecenterformichigan.net
©2014 Bridge Michigan. All Rights Reserved. • Join us online at http://bridgemi.com
Original article URL: http://bridgemi.com/2012/10/final-arguments-on-proposal-5/
30 October 2012
Proposal 5 is a constitutional amendment to require supermajorities of members of each legislative chamber to approve state tax increases or seek approval from the voters. Tax increases would require the votes of at least 25 members of the 38-member Senate and 73 members of the 110-member House of Representatives. If a tax matter went to a vote of the people, a simple majority would decide the result. For full Bridge coverage of Proposal 5 — and the other statewide ballot proposals this year — visit our Ballot Mania page. Advocates were asked to make their case on how to vote on Proposal 5:
No: Prop 5
By Lana Theis/Michigan Alliance for Prosperity
You have been hearing a lot of misinformation from Lansing politicians and special interest groups about Proposal 5, the 2/3 Amendment. Why? Because politicians and special interests want easy access to your pocketbook. Let’s dispel the myths.
Of all the initiatives voters will consider, independent analysis by groups like the Anderson Economic Group agree: Proposal 5 is the one that most clearly belongs in Michigan’s Constitution. What’s the purpose of a state constitution? It is to set guidelines for our government and to protect Michigan’s citizens. That is the definition of good tax policy, too.
In fact, Michigan’s Constitution already contains several taxpayer protections such as Proposal A and the Headlee Amendment. Proposal 5 is an additional taxpayer protection that requires higher legislative agreement and accountability to the electorate in decisions that would take more money from taxpayers.
Opponents of Proposal 5 claim it will be harder to do tax reform. If tax reform is code for a tax increase, yes, it will – and SHOULD – be harder. If politicians had to get 2/3 agreement to pass tax increases, the Michigan Business Tax and our ill-fated sales tax on services wouldn’t have happened in the first place.
Now that we’ve gotten rid of the MBT, a tax the governor and business groups agree was “the worst business tax in America,” let’s make it very hard to put bad tax policy back in place. If politicians cannot get the legislative approval for a tax increase, but still believe it’s necessary, Proposal 5 says you the taxpayer get the final say. If the policy-makers want to change the existing tax code to achieve a “net tax decrease,” they can demonstrate this to taxpayers. A simple majority vote wins in November. Pass Proposal 5 now.
Proposal 5 takes power away from special interests because special interests are in the business of asking for more money. When is the last time you heard of a special interest coming to Lansing and strong-arming legislators into not spending our money? When Proposal 5 is passed and the special interests come asking for your money, they are going to have to have your support to get it.
You’ll hear the opposition claim that if Proposal 5 passes the Legislature will be gridlocked and Michigan will become the next California. California’s problem isn’t their tax limitation, but their spending. Their revenue has increased dramatically since their limitation was passed. They spend more than they take in. Michigan is not California. Michigan would join 15 other states with similar taxpayer protections, states that are currently economically outperforming Michigan.
Whether Republicans or Democrats are in charge, Proposal 5 protects taxpayers by demanding bipartisan support for policy decisions that take more money out of our wallets and our family budgets. This includes policy decisions like the gas tax increase lawmakers and special interests have said they will try to pass in 2012. Organizations that support Proposal 5 such as the National Federation of Independent Businesses agree: businesses need to trust Michigan enough to start doing business here. And they believe Proposal 5 is a good idea.
Opponents throw their hands in the air and yell, “What about an emergency?” You don’t create new taxes to bring in emergency funds. While bad tax policy can be created quickly under the current system, it still takes a long time to collect. Emergency response requires they look at existing funds and shift accordingly. They’ll still do that.
Your “yes” vote on Proposal 5 creates protections necessary for taxpayers. It provides stability for our economy and encourages job creation. Vote “yes” on Proposal 5.
Bridge welcomes guest columns from a diverse range of people on issues relating to Michigan and its future. The views and assertions of these writers do not necessarily reflect those of Bridge or The Center for Michigan.