May is still three months away, but the rough winter weather and subsequent potholes serve as a ready reminder that Michigan roads are in desperate need of repair. Which is why May 5 is such a red-letter date; it’s the day Michigan residents will vote on the proposed road tax. But what exactly does that mean?
In mid-December 2014, leaders of the Michigan House and Senate drafted a compromise that would ‘Increase state taxes and spending by $1.9 billion, of which just $1.2 billion goes to fix the roads, and the rest for other areas.’ However, the deal also includes a state sales tax increase from 6 percent to 7 percent and it’s up to the voters to say ‘yay’ or ‘nay’ to the deal. If voters say nix the tax increase, then lawmakers will have to scrap this version of the deal and go back to the drawing board. And while residents might be tempted to approve the increase in order to get better roads, they might want to read the fine print of the proposal. Specially ‘the $130 million more per year that will be diverted into the maw of mass transit. Michigan taxpayers and motorists are already paying far more than their fair share to subsidize public bus rides, and a ‘yes’ vote in May will add to the inequality.’
The Detroit Free Press article, ‘Poll finds slight edge for Michigan sales tax hike‘ gives insight into how the proposal is being received and its likelihood of passing.
There is definitely a lot to consider. Do your due diligence and research, so you can make an informed decision on May 5.
About Sarah Hovis