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.
We welcome readers to submit letters regarding articles and content in Detroit Metro Times. Letters should be a minimum of 150 words, refer to content that has appeared on Detroit Metro Times, and must include the writer's full name, address, and phone number for verification purposes. No attachments will be considered. Writers of letters selected for publication will be notified via email. Letters may be edited and shortened for space.
Email us at email@example.com.
Detroit Metro Times works for you, and your support is essential.
Our small but mighty local team works tirelessly to bring you high-quality, uncensored news and cultural coverage of Detroit and beyond.
Unlike many newspapers, ours is free – and we'd like to keep it that way, because we believe, now more than ever, everyone deserves access to accurate, independent coverage of their community.
Whether it's a one-time acknowledgement of this article or an ongoing pledge, your support helps keep Detroit's true free press free.