Tagged: state legislature

Taxes, as we all know too well, are a powerful political issue. And the issue has come up yet again at the state Capitol. A cut in the state income tax has become part of the negotiations as Gov. Rick Snyder and the Legislature's top Republican leaders wrap up their budget negotiations. Rick Pluta, Lansing Bureau Chief for the Michigan Public Radio Network, and I sit down to talk politics every Friday and today, in It's Just Politics, it is all the politics of taxes.

Rick Pluta: The governor and the Legislature have set this deadline of June 1 for wrapping up the next state budget.

Zoe Clark: And that's important, because - even though the state's fiscal year begins October 1 - schools, community colleges, cities, townships, and counties all have budget years that begin July 1. They all have budgets that are tied into state spending.

RP: Right. Now, in the final days of discussions, Republicans have put an income tax cut on the table. State House Republicans will roll out the legislation next week.

ZC: So, that begs the question: why are they doing it now?

RP: Well, for a year and a half, Democrats in Lansing have hammered Republicans because all the tax and budget reforms have focused on reducing costs for businesses: eliminating the Michigan Business Tax on 95,000 businesses and the proposal to eliminate the tax on industrial equipment.

ZC: At the same time, a dozen tax credits and exemptions claimed by homeowners, parents, seniors on pensions, and  poor families earning incomes were ended.

RP: And Democrats have been pounding Republicans with that incessantly and with an eye toward the November elections - when, we should note, all 110 seats in the state House of Representatives are up for election.

ZC: So now, courtesy of Republicans, a proposal for income tax relief.

RP: The main bills in the tax rollback package will be sponsored by state Representatives Holly Hughes and Ed McBroom, Republicans representing districts that are considered marginally - 51, 52 percent - Democratic.

ZC: And Democrats most certainly want those seats back.

RP: Exactly, and this shows Republicans intend to put a fight in these seats by giving their incumbents these bills. One accelerates a reduction in the income tax rate; the other increases the personal exemption. But the bottom line is Republicans want the message to be: Republicans equal tax cuts. Democrats, however, have already revealed their counterattack.

ZC: And the counterattack is really what their message has been all along. Since last year, GOP hegemony in Lansing has meant tax cuts to businesses while seniors, homeowners, and working poor families all lost tax breaks that they've counted on, as well as reductions for schools, universities, and local governments.

RP:  Right, so Democrats say this so-called "tax relief:" 50 cents a week, nine dollars a person per year  is pretty meager compared to the costs that everyone has had to pick up in the name of improving the business climate.

Politics can be messy. Politics can be confusing. But, that certainly doesn't mean politics can't be a total thrilling joy-ride. Every Friday afternoon Zoe Clark and Rick Pluta  sit down for a fast-paced spin around Michigan politics.

ZC: It’s Just Politics. I’m Zoe Clark.

RP:And, I’m Rick Pluta.

ZC: We start this week with a tale of intrigue, deception,  and – dare I say it? Betrayal.

RP: Yes, Zoe. A defection. This has not happened in Lansing since the 1990s. Democrats thought they had a reasonably safe seat in the 76th state House District in Grand Rapids... Competitive but marginally Democratic with a strong incumbent in Representative Roy Schmidt.

ZC: But then….A tergiversation,  a flip.

The Michigan Senate has voted to phase out an industrial tax that’s a big revenue generator for school districts and local governments. Republicans amended their original plan to make sure much

of that money for local services and education would be replaced.

State Senate Majority Richardville says if money from the state falls below a certain level, communities could return to taxing industrial property.   

“It’s kind of a poison pill, as we call it in legislative jargon, where, if we don’t keep our promises than the whole program disappears, so it forces the state government to say we will keep you at the level we say it will,” Richardville says.

Richardville acknowledges there’s no way to guarantee schools and local governments won’t see some reductions. The money for the replacement would come from the sunset of other tax breaks.

Republicans say Michigan’s tax on business and industrial property is unique in the Midwest and drives investment elsewhere.

The Senate rejected efforts by Democrats to link the tax phase-out to job creation targets.

State Senator Rick Jones of Grand Ledge might want to watch his back for the next few weeks, or maybe, decades. Yesterday, he threatened to violate a time-honored legislative custom.

Lawmakers at all levels are traditionally known for telling the people “do what we say, not what we do.”

Michigan lawmakers are headed back to the state Capitol after a two-week spring break, with the state budget remaining their top priority.

Legislative sessions resume Tuesday. Lawmakers say they hope to wrap up a spending plan for the fiscal year that starts in October within the next two months.

There are some differences between developing budget plans from Republican lawmakers who hold the majority in the state Legislature and Republican Gov. Rick Snyder's initial budget proposal.

Some Republicans want to spend less than Snyder proposed on the state prison system and some other state departments. They say they worry that state revenues won't come in as high as state economists projected earlier this year.

The House and Senate appropriations committees have meetings scheduled for this week.

Democrats in Lansing plan to use this week’s tax-filing deadline to re-open the debate about last year’s tax overhaul at the state Capitol.

Democrats think the tax issue will help them in elections this year. Seniors born after 1946 have their pensions taxed for the first time. Deductions and tax breaks for many charitable donations will be gone when state taxpayers file next year. At the same time, taxes were lowered for many businesses.

Democrats intend to remind voters of that as they try to win an additional nine seats in November to take control of the state House. They say more than a dozen swing districts will be the target of fierce campaigning on the issue of taxes.

Republicans says there are elements of the tax overhaul that were unpopular, but necessary to streamline and simplify tax filing and to make Michigan a more business-friendly state.

In the opening of his State Integrity Investigation piece, reporter Chris Andrews shows us why Michigan gets the failing grade:

The campaign finance system here has more holes than I-94 after a spring thaw. Big spenders and special interests can easily shovel millions of dollars into election activities — secretly if they choose... And the financial disclosure system for state elected officials?

Well actually, there isn’t one.

Welcome to Michigan, the “Trust Us” State when it comes to transparency. Reform efforts are frequently launched, sometimes debated, always shelved.

The State Integrity Investigation is a project of the Center for Public Integrity, Global Integrity, and Public Radio International.

The project aims to "expose practices that undermine trust in state capitols -- and spotlight the states that are doing things right."

You can see how all the states stack up here.

Clearly, Michigan is not going to make the highlight reel.

Overall, after looking at 330 specific measures of "state integrity," Michigan ranked 43rd among the 50 states.

And while Lansing has not been rocked by scandals seen in some other state capitols around the country, Andrews writes there are "glaring holes," when it comes to transparency in money spent to lobby lawmakers, and in the money spent to elect or defeat candidates in Michigan.

Michigan Supreme Court elections, a seat money can buy

How money can influence the perceived integrity, or the real integrity of an office was highlighted in a recent piece by Michigan Radio's Lester Graham.

In his Michigan Watch report, Money Talks: Campaign money and Supreme Court justice candidates, Graham illustrated how once a candidate wins a seat on the Michigan Supreme Court "no one really knows if a case is being decided strictly on the merits, or because of someone’s hidden political donation and its influence."

Graham spoke with former Michigan Supreme Court justice Betty Weaver about this:

“It isn’t just the appearance of impropriety, this money does have influence. Common sense tells you it does. I’ve been there,” said Weaver.

LG: Do you think you’ve seen on the court influence because of a large donor at one time or another?  

“Yes, I do think that the ability to control who gets appointed and who gets elected has an effect on the decisions of the court, so you can pretty well guess how it’s going to go,” said Weaver.

In his State Integrity Investigation piece on Michigan, Chris Andrews notes that Gov. Snyder proposed an ethics package when he was running for governor in 2010. Snyder called for banning gifts from lobbyists, "cooling-off periods," and regulating issue advertising.

But while Snyder achieved many of his campaign goals after taking office in 2011, these reforms were put on the back burner.

Rich Robinson, executive director of the Michigan Campaign Finance Network, told Andrews that lawmakers in Michigan are unlikely to change anything unless the public demands it.