Graduated Income Tax Proposal Under Consideration by Democrats

Representative Jim Townsend (D-Royal Oak) has been pushing a proposal for a graduated income tax, which has been met with a mixture of support and opposition along party lines. According to Representative Townsend, the proposal would result in a tax cut for 95 percent of Michiganders who pay income tax. The proposal would replace the current 4.25 percent income tax with an incremental tax starting at 3 percent and increasing up to 10 percent for those who make more than $1 million annually.

Among those opposed to the proposal are legislative Republicans, meaning the proposal would have to be implemented through a ballot initiative. The business community, including the Michigan Chamber of Commerce, joins the Republicans in the state legislature in their strong opposition to the bill.

While few have officially supported the proposal, many groups have positive feelings and believe that if an official stance were to be taken it would be one of support. The Michigan AFL-CIO, Kalamazoo County Democrats, and the Oakland County Democrats are among those groups who have released statements of praise for the graduated income tax proposal.

Many prominent Democrats from groups who support the proposal believe that multiple issues supported by Democrats could end up on the ballot in 2016, leading to a higher turnout in Michigan. While the issue of graduated income tax has failed three times in the past, Joe DiSano, a Democrat strategist, believes those failures were a result of vague ballot initiatives.

posted by PAA Online , Friday, June 12, 2015 10:08 AM
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Road Package Plan Praised by House Republicans

A 12-bill package passed the House of Representatives on Wednesday with varying levels of support. House Bill 4613 passed with the largest margin, 100 ayes to 9 nays, while HB 4609 passed by the smallest margin, 57 ayes to 52 nays. The package received pushback from House Democrats, while some Republicans joined their opposition on HB 4609, which would eliminate the Earned Income Tax Credit. Representatives Bizon (R-Battle Creek), Hooker (R-Byron Center), Howrylak (R-Troy), Iden (R-Oshtemo Township), Hughes (R-White River Township), and Leutheuser (R-Hillsdale) joined their Democratic colleagues in opposing the bill.

The package would devote nearly $1.2 billion to roads according to the House Fiscal Agency, well above the originally estimated $1.05 billion. The money would come from a variety of sources including $135 million from economic development funds, $908.9 million from the General Fund, and $119 million from new revenue sources. Among the new revenue streams are HB 4614, HB 4615, and HB 4616, which would tie the gasoline taxes to inflation as well as bring the diesel fuel tax up to the same level as the standard gasoline tax. The House also passed HB 4612, which would increase registration fees on electric and hybrid vehicles that get more that 40 miles per gallon by $100 and $30, respectively.

Most House Democrats opposed the bills creating new revenue streams, leaving Representative Harvey Santana (D-Detroit) as the lone Democrat to vote for all three gas tax bills. House Minority Leader Tim Greimel (D-Auburn Hills) and Representative Marilyn Lane (D-Fraser) openly attacked the plan and called into question the House Republicans decision to recess for the summer, rather than stay in Lansing to negotiate.

Outside opposition for the package came from the Michigan Economic Development Corporation (MEDC) and the Michigan Catholic Conference, while the County Road Association of Michigan (CRAM) was pleased with the passage of a road-funding package but worried about the longevity of General Fund appropriations. The Michigan Catholic Conference’s opposition was due to the elimination of the Earned Income Tax Credit, as they believe it is unfair to take funding from the working poor to fix the state’s roads.

posted by PAA Online , 10:07 AM
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Senate Education Committee Considers Eliminating Paid Release Time for Public Unions

Senate Bill 280, which would eliminate the current system of government officials being paid for leave time to negotiate for government unions, saw debate in the Senate Education Committee on Tuesday. Unions whose binding arbitration, including police and fire fighters, falls under PA 312 of 1969 would be exempt from the bill. In the current system many employers, both public and private, pay union representatives to negotiate their collective bargaining agreements.

There was a split among unions on the bill; however, most stated their opposition. The Michigan Association of School Boards and the United Auto Workers (UAW) were vocally opposed to the proposed law, with the UAW saying that paid leave time allows union representatives to immediately deal with workplace issues, creating a safer work environment. The Michigan Association of School Administrators voiced their support for the bill with Shawn Lewis-Lakin, the Superintendent of Royal Oak, saying that union dues should fund the leave time.

The committee also heard testimony on a similar bill, Senate Bill 279, which would end the current practice of using a public school employee’s most recent salary when calculating their pension after they take professional services leave. Currently only those public school employees who took their professional services leave before October 1, 1996 are still under this practice. The sponsor of the bill, Senator Marty Knollenberg (R-Troy), said that under the current law the pension system is put under considerable strain.

posted by PAA Online , 10:07 AM
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Governor Snyder Signs Religious Adoption Package

Governor Snyder signed House Bill 4188, HB 4189, and HB 4190, allowing adoption agencies to deny services based on deeply held religious beliefs, sparking significant praise and opposition from various groups on Thursday. The bills codify the current policy of the Department of Health and Human Services. Many Democratic groups and the lesbian, gay, bisexual, and transgender (LGBT) community reacted in outrage, while the Michigan Catholic Conference joined various Republican groups in vocally supporting the signing of the bills.

Mr. Snyder’s spokesperson, Dave Murray, and many Republican supporters stated that the threat of faith based adoption agencies, who place 25-30 percent of children, closing their doors was real as they were faced with the choice of closing or violating their religious beliefs. Mr. Murray also stated that the added provision, which requires agencies to provide information on other agencies to anyone denied services, was key in the legislation receiving the Governor’s signature.

Following the bill signing the American Civil Liberties Union of Michigan stated that they had begun searching for plaintiffs to sue over the legislation; however, they did not say whether the suit would take place in state or federal courts. Various LGBT groups argued that the new laws were discriminatory, as agencies could now legally refuse to serve them due to their sexual orientation.

Democrats who opposed the bill attacked the Governor, as they argued that the bill is no different in its discriminatory practices than the Religious Freedom Restoration Act, which Mr. Snyder said he would not sign without expanding the Elliot-Larson Civil Rights Act to the LGBT community first. Mr. Murray countered their argument, stating that the new laws were different, as they require the agencies to refer those that they refuse to different adoption agencies.

posted by PAA Online , 10:06 AM
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Ban on Local Wage Ordinances Passes Senate

After being reported from the Senate Michigan Competitiveness Committee, House Bill 4052 passed the Senate with immediate effect by a 22-16 margin. The bill, which saw strong opposition from municipalities, would limit local governments’ ability to pass ordinances regarding minimum wage and other issues involving employment.

After multiple attempts to amend the bill in committee by Senators Tom Casperson (R-Escanaba) and Rebekah Warren (D-Ann Arbor), the bill was reported with 4 aye votes and a single nay. Many Republican legislators, including Senator Tonya Schuitmaker (R-Lawton), supported the bill saying that it was necessary to ensure that recently created jobs were not pushed out of Michigan due to burdensome regulations.

Opponents of the bill argued that the bill was considerably broader than many of its supporters believed. Senator Coleman Young II (D-Detroit) was one of the more vocal opponents, saying that the bill did significantly more than remove ordinances that are seen as burdensome on businesses. The Michigan Township Association (MTA) stated that they were still trying to make heads and tails of which of their regulatory powers would be affected by the passage of the legislation.

The bill also contains language to eliminate prevailing wage, something Governor Snyder has said he would veto. Senator Warren offered an amendment to remove this section of legislation during committee; however, her motion was defeated as were her other amendments attempting to remove sections she argued were much too vague.

posted by PAA Online , 10:06 AM
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PAAdvisory Briefs

Drones May be Banned by Capitol Commission

A policy to ban unmanned aerial vehicles from flying on Capitol property is under consideration by the Michigan State Capitol Commission. The commission argued that the ban should be passed for multiple reasons, such as the possibility of drones malfunctioning and falling onto the Capitol lawn possibly causing injury and the issue of drones flying into the building and causing damage to the exterior. The commission also pointed out that Capitol Square is within the controlled airspace of Capital Regional International Airport, making drone flights against Federal Aviation Administration rules.

Avian Flu Found in Geese

The avian flu has been detected in three geese in Sterling Heights; however, at this time there are no signs that the influenza has spread to domesticated birds or humans. The discovery of the geese makes Michigan the 21^st state to report a positive finding of avian influenza. The Department of Natural Resources’ action plan will now take effect, meaning a management zone of Macomb and Oakland counties will be instituted.

Sylvia Santana to Run for 9^th House District

Representative Harvey Santana’s wife, Sylvia Santana, has launched a campaign committee to succeed her husband as the Representative for the 9^th District. Representative Santana will be term limited in 2016, leaving the seat open. He said that his wife would focus on the development of small business and the advocacy of young girls. Ms. Santana is in the process of developing her campaign message.

House of Representatives to Break for the Summer

Outside of six tentatively scheduled session days, the House of Representatives plans to adjourn for the summer at the end of next week. House Speaker Kevin Cotter (R-Mount Pleasant) had previously stated breaking for the summer was not on his mind; however, he added that if the full House remaining in session would not advance a road funding deal the chamber would adjourn. Last month, Senate Majority Floor Leader Mike Kowall (R-White Lake) stated that the Senate would hold Session days throughout the summer and into the fall; it is unclear if those days will require attendance.

posted by PAA Online , 10:05 AM
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