Revenue estimates call for caution, not more chaos and cuts

For Immediate Release: January 12, 2017

Contact: Alex Rossman
arossman@mlpp.org
517.487.5436

Income tax repeal latest threat to our air and water, schools, roads and public safety

LANSING—The Michigan League for Public Policy issued the following statement on the revenue projections being announced at today’s Consensus Revenue Estimating Conference. It can be attributed to Michigan League for Public Policy President & CEO Gilda Z. Jacobs.

“While state revenue estimates are up for the time-being, our economy is still far from booming. Lawmakers must be careful in their management of state dollars in the years ahead in order to encourage economic growth and avoid future budget problems. Legislators should heed recent crises with Flint’s water and Detroit Public Schools and use any extra resources to make investments in our state and its rundown infrastructure. Much more still needs to be done in Flint and other communities around the state, and lawmakers should be doing everything in their power to prevent such disasters from happening again.

“Unfortunately, lawmakers are considering doing the opposite by cutting taxes again, despite the many messes previous cuts have already caused. Time and again, the Michigan people have been promised an economic ‘boon’ from tax breaks that largely benefit the wealthy but the economic recovery has yet to come, at least for those who actually need it. The complete repeal of Michigan’s income tax would blow a $9 billion hole in the state budget, causing massive cuts to services people rely on, like our schools. An income tax reduction of even 0.1 percentage point would cost the state around $250 million, causing significant pain for residents. The water we drink, the schools our kids attend, the roads we drive on and the police officers and firefighters we rely on all depend on state funding and Michigan should be investing in these services, not hobbling them with another misguided and ineffective giveaway that will largely benefit the rich without creating any jobs.”

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.