Coalition group, “Proposal 1 is all about special interests”
Apr. 16, 2015 PLYMOUTH VOICE.
Plymouth Michigan News
The Coalition Against higher Taxes and Special Interest Deals released its first TV commercial in a statewide ad campaign last month. The group is opposing the May 5th ballot Proposal 1, which raises state sales tax from 6 to 7 percent. In the ad, opponents argue that approval of the proposal would send nearly 40 percent of the money raised to special interests.
“The roads are being held hostage,” says Paul Mitchell, Saginaw-area businessman and founder of the group in a recent interview.
“We don’t argue that the roads don’t need to be fixed. We do argue that we shouldn’t have to pay over $700 million to various other interests so we have the right to fix our roads.”
If passed, the constitutional amendment and related laws is projected to generate $1.9 billion annually, once fully implemented in 2018 according to the House Fiscal Agency.
According to the non-partisan agency, $1.3 billion would fund road and bridge repairs, $200 million would be tagged for schools, $116 million to mass transit, $111 million to local revenue sharing and $173 million to the state’s general fund.
Those opposing passage say:
The proposal is a net tax increase of $1.8 billion
The revenues for road construction and maintenance are not sufficient to make up for the state’s past failures on new construction and maintenance.
Tax revenue generated at the fuel pump should be used for transportation needs not schools and local government.