Monday, June 29, 2009

Tax Ballot Initiatives: The Legislature and The Governor

Michigan's legislature is considering to do tax reform by ballot initiative. They will attempt to do this before they adjourn in July. They will need a super majority to get this issue on the ballot. They want to attempt to complete this by the end of July because they want to reserve time if they fail to circulate petitions to Michigan voters to place on the ballot what the legislature could not get done with legislative votes. They will need 500,000 plus signatures to get it on the ballot--more signatures than required but they will need a safety net of signatures to buffer against disqualified signatures. They will need to get the signatures done by the end of August or so.

Tax issues to be considered for ballot presentation might include going from a flat tax to a graduated income tax. Eliminating the Michigan Business Tax Surcharge and the entire MBT. Replacing this with a service tax and changing the sales tax rate.

Will this be too much for Michigan citizens to consider and they will just vote no on matters that are too complicated or matters that they do not understand? Does the legislature and the Governor have the leadership and committment to spend the Fall explaining to the people why these tax reforms are good for Michigan citizens and how it will lead us to a more financially secure future? How is the legislature going to get bi-partisan votes to put this on the ballot

Other key questions are whether citizens or legislative ballot initiatives are good public policy? Do we want citizens voting on matters as complicated as tax reform or is this the job of the legislature and the Governor--should they buckly down, work together to fix the tax system and prepare for a new future economy? Isn't this what they are paid to do?

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