11/2/12 - On Election Day, Michigan voters will be asked to approve a Constitutional Amendment requiring that all future tax increases, including new taxes and tax base expansion, be approved by a two-thirds vote of the legislature. If passed, Proposal 5 would be in addition to a current state constitutional requirement that already caps the amount of annual state spending. According to Eric Scorsone, an expert on state finance at Michigan State University, backers of this measure such as Michigan Alliance for Prosperity, argue that the amendment is necessary to compete against neighboring states with lower taxes in order to save Michiganâs jobs and would provide certainty for future potential businesses about what their bottom-line costs would be, thus giving the state a leg up to attract that development. However, Scorsone also points out that this measure could impact the long-term financial stability of local units of government because a limitation on state revenue would make it hard for the state to share revenue with local governments, forcing the latter to resort to cuts in spending. Currently only nine states have constitutional requirements for super-majority votes to enact similar tax increases. Most recently, a similar requirement was adopted by the Wisconsin legislature, although there, the super-majority requirement could be changed by a simple majority vote. For additional details on all of the ballot proposals, you can log onto the Citizens Research Council of Michigan, a non-political public affairs research organization. Weâve put that link below. (JK)
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