News and analysis from The Center for Michigan • http://thecenterformichigan.net
©2017 Bridge Michigan. All Rights Reserved. • Join us online at http://bridgemi.com
Original article URL: http://bridgemi.com/2014/07/proposal-1-spot-toes-the-line-on-factual-claims/
29 July 2014
|Who:||Michigan Citizens for Strong and Safe Communities|
|What:||“Facts,” a 30-second ad supporting Prop 1|
|The call:||No Foul|
The only statewide ballot proposal voters will see in the primary Aug. 5 is a complex tax question with a major impact on Michigan businesses and communities. If approved, the state’s personal property tax, which is imposed on many types of business equipment, would be repealed and communities that had benefited from the tax would receive the same amount of money through a different tax.
Proposal 1 has no organized opposition, and is supported by most Republican and Democratic leaders, business leaders and communities. The complexity of the ballot question, though, could lead some voters to not vote on the issue or vote no. Michigan Citizens for Strong and Safe Communities is a collection of business and government officials who are leading an education campaign.
“Proposal 1 will make Michigan more competitive by eliminating the unfair double tax on personal property that small businesses are forced to pay. That will create up to 15,000 new jobs without raising taxes. Proposal 1 will also stabilize community funding for local schools, police and fire protection.”
If passed, Proposal 1 would eliminate what businesses have for years described as a “double tax,” in which they pay a sales tax on new equipment, and personal property tax on that equipment for years afterward.
The ballot measure would also assure that communities, which received the revenue raised from the personal property tax, will not lose money; communities will instead receive funding through the diversion of revenue from a different tax that is already being collected. In simplest terms, businesses will save money, communities don’t lose money, and nobody gets taxed any more than they are already.
The claim that passage of Proposal 1 would create 15,000 jobs is based on a report by the Anderson Economic Group that projects the elimination of PPT could lead to an additional 6,000 to 15,000 jobs.
That analysis was commissioned by the Michigan Manufacturers Association, an organization whose members stand to gain substantially from the repeal of PPT. Some economists say that the actual impact on employment will be modest, and that there’s a chance it could actually cost jobs.
|The call:||No Foul|
The Personal Property Tax is a double tax, as stated in the ad. Proposal 1 also would stabilize revenue for communities. The ad pushes the envelope on its job-gain claim, but the claim is supported.