Reader: Sales tax increase bad for Michigan.

April 20, 2015

A letter to the editor by Marian Fortier Johnson, Manistee.

Michigan has been losing population.  According to the eighth edition of the “Rich States, Poor States” report released by the American Legislative Exchange Council (ALEC), states with low taxes have been gaining population.

On the list of states forecast to gain economic competitiveness, Michigan is  rated neither one of the top 10 nor one of the 10 lowest.  However, she slipped by 12 points, worst slip in the annual rankings.

The co-author said “The big story this year is the bipartisan embrace of state tax cuts.  States are increasingly realizing the need to become more competitive through fiscal responsibility and free market economic reforms.  We anticipate 2015 will be a record year for pro-growth tax reform.”

Sales tax is regressive and not helpful for the economy.  According to the Tax Foundation the average Michigan resident must work almost one third of the year, from January to the middle of April,  just to pay all the annual combined federal, state and local taxes.  Michigan residents pay taxes that are 22 percent higher than the national average.   Michigan would be tied for second highest state sales taxes in the nation. Voting to raise the sales tax is a vote for Michigan to continue losing population and competitiveness. Vote on May 5, [No] on  proposal 15-1.

 

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