Michigan 2012 Election: Proposal 5, Limiting Tax Increases

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(By Andrew MacKie-Mason)

There is one primary reason for California's financial woes: Proposition 13, passed in 1978, which (among other things) required that future tax increases had to be approved by a two-thirds vote of the legislature. Now that Proposition 13 has almost destroyed the government of California, the Michigan Alliance for Prosperity (sic) wants to bring it to Michigan.

Proposal 5 on the 2012 ballot in Michigan would require that tax increases (or increasing the tax base, or instituting new taxes) would have to be approved by two-thirds of the legislature or two-thirds of the popular vote at a ballot election.

Even if you think that raising taxes should be hard, you should realize that the proposal would apply to almost any effort to restructure the tax code, even if that effort, on net, reduces taxes. That is because any rational tax reform policy (and by 'rational' I mean "those not proposed by Grover Norquist") will include both cuts and increases. Closing tax loopholes to simplify the tax code, for instance, would constitute a "new tax" under the proposal, and would require a two-thirds vote, even if closing the loophole were accompanied by overall deductions in the rate.

Dealing with complicated and contentious issues like the tax code should not require the level of agreement in our legislature that we reserve for constitutional amendments. Vote no on Proposal 5, and preserve rational government in Michigan.