Printer Friendly

MICHIGAN STATE AFL-CIO WON'T SUPPORT PROPOSAL A

 LANSING, Mich., April 21 /PRNewswire/ -- The Michigan State AFL-CIO will not support Proposal A, the property tax proposal to be voted on by Michigan voters June 2.
 Meeting late Tuesday afternoon at state federation headquarters in Lansing, the Michigan State AFL-CIO Executive Council after a lengthy discussion voted to table Proposal A, in effect denying support to the proposal.
 "Some of what's in this proposal makes strides toward school finance reform, but a lot of it is bad," said Michigan State AFL-CIO President Frank Garrison. "But the main reason why we decided to simply not support Proposal A instead of opposing it outright is that we don't know all the details. Key elements of the proposal will not be on the ballot June 2, but are still pending before the Legislature, including the assessment freeze in 1994 and the allocation of school monies for the next fiscal year."
 "Voters rightfully should be skeptical of any proposal that says 'Vote to increase your sales tax now, and trust the governor and Legislature to freeze your taxes later,'" Garrison continued. "That kind of 'the check's in the mail' mentality can be used in selling swamp land in Florida, but not to revamp our school finance system. Voters deserve all of the details up front, not after the election."
 Garrison said Proposal A would help some union members by freezing property assessments, but would hurt others by freezing funds for local and county services.
 "But the bottom line is that until we know all the details about Proposal A, it's impossible to make an intelligent judgment on all that's good and bad about it," he said. "But Proposal A has enough bad points already that we know we can't support it. Whether we actively oppose it depends on if we get all the details up front, and if they match up with the rhetoric."
 As for Proposal A's bad points, Garrison noted:
 -- Because businesses pay a smaller share of the state sales tax than the property tax, Proposal A is a tax shift which lowers the overall tax burden of businesses while increasing the tax burden of individuals and families.
 -- Unlike property taxes, state sales taxes are not deductible from federal income taxes, meaning while local governments will see less property tax revenue, more tax dollars will be sent to Washington.
 -- The two facts described above mean that by 1996, despite a net tax increase to individuals of $35 million, taxes retained within the state will decline by $745 million -- with $419 million lost to the federal government and $361 million in lower business taxes. Thus public services would lose three-quarters of a billion dollars while individuals on average would see no tax savings.
 -- The tax relief promised by the governor is inequitable. Low- income families spend a greater proportion of their incomes on items subject to the sales tax than do high-income families. Renters, who constitute 30 percent of taxpayers, are not guaranteed that their rent will decline once their landlords' property taxes decline. Many senior citizens who receive the Homestead Property Tax Credit will see no property tax relief at all while having to pay a higher sales tax. Also, there are geographic biases regarding which school districts win and lose in the long run under Proposal A.
 While waiting to see what actions the governor and Legislature take in the next few weeks concerning implementing legislation for Proposal A, the Michigan State AFL-CIO will retain the option of actively opposing the proposal.
 -0- 4/21/93
 /CONTACT: Jon Ogar of Michigan State AFL-CIO, 517-487-5966/


CO: Michigan State AFL-CIO ST: Michigan IN: SU:

SB-ML -- DE014 -- 8752 04/21/93 12:35 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 21, 1993
Words:611
Previous Article:OPUS ONE NAMED DETROIT MONTHLY 'RESTAURANT OF THE YEAR'
Next Article:STEUBEN GAS STORAGE WILL HOLD OPEN SEASON FOR GAS STORAGE SERVICES AT NEW FIELD
Topics:


Related Articles
AFL-CIO PRESIDENT ISSUES STATEMENT ON UKRAINE INDEPENDENCE VOTE
AFL-CIO PRESIDENT LANE KIRKLAND ISSUES STATEMENT ON COMMITTEE'S VOTE TO ENDORSE CLINTON
WORKERS' MEMORIAL DAY RALLY SET ON APRIL 26 AT UAW REGION 1A
AFL-CIO PRESIDENT COMMENTS ON RULES FOR TEAMSTERS' INTERNAL REVIEW BOARD
AFL-CIO COMMENTS ON BUSH'S WORKER ADJUSTMENT PROPOSAL
OVER 100,000 EXPECTED TO MARCH IN LABOR DAY PARADE
Union mergers: 1985-94 update.
GARRISON REACTS TO UAW, USWA AND IAM MERGER
AFL-CIO Endorses Illinois Deregulation Proposal

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters