In the state of Michigan, the economy hasn’t been too great,
and their roads, schools, and local governments are paying for it. There is a
new proposition for the state that could turn this around. Now, keep in mind, I
am not from Michigan and I’ve never been there before. I don’t have any personal
experience with the economy and infrastructure in Michigan. I had to do some
research and read several articles about this particular issue.
The proposal is just mentioned is Proposal 1 of Michigan, to
be voted on by the people of Michigan on May 5th, 2015. The
proposal, if passed, would accomplish several things:
o
It would raise the sales tax one percent (from six
percent to seven percent).
o
It would raise the gas tax (possibly doubling
the tax over time)
o
It would raise vehicle registration fees and get
rid of special vehicle registration discounts.
o
It would raise the earned income tax credit for
low income families.
o
The revenue (a projected $2 billion) would fund mostly
the state’s transportation by building new roads and restoring existing roads (Figure 1).
 |
| Figure 1 http://www.mlive.com/news/flint/index.ssf/2015/04/michigan_roads_proposal_1_foru.html |
o
The revenue would also fund the School Aid Fund.
o
Community colleges and tech schools would be
able to use the School Aid Fund.
o
The state would introduce competitive bidding on
road projects.
With all of these points to consider, there are those who
are opposed to Proposal 1. Those who are against the proposal claim that 40% of
the additional $2 billion per year would go to the state’s special interests. The
average impact on each household per year would be from $450 to $500 in
additional costs. The Michigan Department of Transportation (MDOT) is in debt,
and those against the proposal fear all their money will just go toward the
MDOT debt. Raising taxes could negatively impact tourism. Many other bills are
connected to the proposal, which is also a lot to consider. One impact that
would be made, not specified in Proposal 1, but in a connected bill would
create an unelected Authority to handle the extra revenue. Those opposed do not
feel safe having an unelected Authority conducting their tax dollars.
Those who are for Proposal 1 have their reasons as well.
Those who want to vote yes on the proposal think that the benefits outweigh the
costs. The extra revenue would improve their roads and fund schools so their
children get a better education. Low-income families would be compensated
through tax credit for the additional strain on money. Also, a portion of the
funding would go to local governments and help pay for the salaries of
policemen and firefighters. Raising the tax by only one percent isn’t too much
for those for the tax, and they think it’s a great way to improve their future.
After looking at both sides of the issue, as a civil
engineer (in training) I believe it is in Michigan’s best interest to vote yes
on Proposal 1. It’s true that a significant chunk of the extra revenue would
not go to roads, but that 40% includes the School Aid Fund and other good
causes. The average impact on each household might seem large, but spread
through out a whole year makes the impact only $37.50 to $41.67 more each month.
For some families this might make things tight, so the proposal also raises the
earned income tax credit for those low income families. This would help
compensate for the additional $40 a month. There’s a lot of good that could
come from this proposal for raising the cost of a few things (tax, gas, and
vehicle registration). The additional $2 billion will go a long way in improving
the future and infrastructure of Michigan. Engineers always try to look for a
brighter future for the public.
