By a decisive 69-31% margin, Michigan voters passed Proposition 1, giving businesses a $500 million tax break on top of the $1 billion tax break they were given by Rick Snyder and Republican legislators just after the 2010 election. Proposal 1 eliminates the Personal Property Tax, a tax businesses pay on equipment that they own.
According to analysis by the Citizens Research Council, the net revenue loss to the state will rise to half a billion dollars by 2025:
All told, net [General Fund/General Purpose] revenue will be $107 million lower in FY2016 and almost $350 million lower in FY2017 as reimbursement needs increase with an expanded PPT exemption. The net revenue loss continues to grow over time, reaching $500 million by FY2025.
The overwhelming passage is not especially surprising given that not a dime was spent against the measure while the business community dropped upwards of $8 million promoting the tax cut. Gov. Rick Snyder made the rounds of the major radio and television stations, encouraging people to vote “yes” to eliminate what he has called “second dumbest tax” in Michigan, second only to the Michigan Business Tax which he and the GOP eliminated in 2011.
Despite the elimination of the MBT, Michigan still has the third highest unemployment rate in the country.
Perhaps with this we can rise to 5th or even 6th place.
