Report: Michigan’s $51 billion in tax cuts the “wrong path to prosperity”

May 14, 2014

Since 1994, Michigan has conducted a $51 billion tax-slashing experiment, one that has ultimately “failed,” says a new  report on the state’s tax policies.

The report, titled “Michigan’s Tax Policies: Wrong Turns on the Path to Prosperity,” offers an in-depth look at Michigan’s tax policies dating back to the passage of Proposal A, the package of bills that restructured how the state funds public schools.

Those cuts resulted in a loss of $26.9 billion in taxes for the state School Aid Fund and $6.2 billion in revenue-sharing to cities, according to the report written by Douglas C. Drake, the former head of the state Treasury Department’s Office of Revenue and Tax Analysis.

In the report, Drake writes: “It would seem that if Michigan is a laboratory of democracy, the experiment has been run, and the data is in. Dramatic cuts in taxes do not increase prosperity measured by income of average citizens, or add to a state’s ability to create jobs.”

The report notes it was funded by a coalition of teacher groups and unions. But it’s an extremely detailed overview that offers insightful context on the impact that state policy has had on Michigan over the last two decades.

  • nobsartist

    It is the right road to “prosperity” as long as you can put up with a destroyed infrastructure including all roads and bridges, the education system and the City of Detroit. Certainly though, all business’s have prospered with the “no tax on profits for 12 years” which the Big Three scammed the government into giving them by holding jobs hostage, at least they were able to destroy those unions, though. Don’t forget tricky dicky’s 1.8 BILLION dollar tax give away to business and the gutting of the DEq or whatever he is calling it this week along with all social programs. It is obvious that the assholes in lansing are nothing but a bunch of stupid political hacks. Throw ALL of the scumbag republiCONs out in November and please do not elect another “governor” who’s only business experience is bankrupting a computer company and then moving it to China.
    Tricky dicky and his group of morons is just another example of failed republiCON policies and an indication as to exactly how stupid the average Michigan voter that votes republiCON really is.
    By the way DICK, where are those jobs?