Michigan

Two Michigan Measures Reach The Ballot, But Not Democratic Initiative

Joe Mathews — Tue, 26 Aug 2008 13:23:00 -0400

Two Michigan measures -- one to lift restrictions on stem cell research, the other to permit use of marijuana for medical purposes -- have qualified for the ballot. But a third measure -- the Democratic-inspired initiative to cut legislators' pay, change the courts, and downsize the legislature -- was not placed on the ballot. (This is the measure, you'll recall, that was billed as a goo-goo reform effort before the discovery of a Power Point presentation that showed it to be part of a labor-Democrat effort to curb the mostly Republican courts). A court likely will decide whether that initiative makes the ballot. The AP sums it up.

In Michigan, A Built-In Conflict of Interest

Joe Mathews — Sun, 06 Jul 2008 23:26:00 -0400

A complex Michigan "government reform" ballot initiative has the signatures to make the November ballot. But the measure faces legal challenges--and thus creates a conflict of interest. Judges are about to be asked to rule on a measure that affects them directly.

The initiative would do many things: cut politicians' pay, change election law, and reduce the size of the legislature and the Supreme Court. It also would cost a number of other judges their jobs. That's an enormous conflict of interest for judges. Is it possible to move a state case out of state?

The initiative is being sponsored by Democratic interests, who want to cut into the state's mostly Republican judiciary.

IN THE STATES: Michigan Docs Hope to Scrub Away Barriers to Primary Care Careers

Paul Testa — Thu, 19 Jun 2008 21:22:00 -0400

The typical medical student begins residency $139,000 in debt. On Scrubs, J.D. and Turk stole fruit cups and toilet paper from Sacred Heart Hospital to help cover their expenses, but the Michigan State Medical Society has a few other ideas to help medical students cope with the rising costs of education and enable them to go into fields like primary care, instead of more lucrative specialties like dermatology.

Their ideas—presented as a resolution at the American Medical Association's annual meeting—were reported in a well-researched piece in the Detroit Free Press this week. The resolution noted the average doctor in his or her first year of residency could expect to pay nearly half of his or her after-tax income repaying school loans. This burden was especially difficult for primary care doctors who earn about 30 percent less than the average base-year salary for all physicians in 2006 according to the Association of American Medical Colleges.

We've written before about a loan-repayment program in Massachusetts designed to encourage primary care doctors to work in high need areas. The Michigan group took a broader approach. Suggestions included:

Shortened curriculums tailored to a student's competencies
Work-study opportunities for med students
Paid internships for fourth year students who had passed initial licensing exams
Investment funds to match parental savings

We'll let the medical education experts figure out which of these approaches are the best, but when it comes to our medical system as whole, we've got to do more than just ease the burden of debt. We've got to change the way we pay for health care in this country so that doctors can afford to choose primary care specialties like internal medicine or pediatrics without having to worry if the janitor will catch them stealing fruit cups.

Will Obama-McCain Choice Affect Michigan Marijuana Initiative?

Joe Mathews — Thu, 22 May 2008 16:52:00 -0400

That's the argument of this piece in the Michigan Messenger. An initiative to legalize marijuana for medical purposes should be on the November ballot.

What a Blocking Campaign Looks Like

Joe Mathews — Wed, 30 Apr 2008 16:58:00 -0400

Take out the over-the-top claims about "free speech blockers" and this video posted by supporters of the recall effort against Michigan House Speaker Andy Dillon gives you a look at what a blocking campaign looks like. And it's not nearly as big a deal as press reports and advocates on both sides of a measure make it out to be (blockers really don't block much, but they're rarely the "thugs" they're described as by those being blocked). Blocking campaigns are mostly a waste of everybody's time and money.

The video shows some political looking folks showing up and surrounding a circulator. At one point, one of the blockers claims the recall petition is really about gay marriage. Self-styled reformers would like to make it crime to make such false claims, but this is political speech.

Recalls and Boomerangs

Joe Mathews — Tue, 29 Apr 2008 16:03:00 -0400

Now comes news that an effort to recall the Democratic speaker of the state House in Michigan has gained new momentum. Conservatives there are upset about Speaker Andy Dillon's support for tax increases. It's already a nasty business. As the Detroit News reports, recall supporters are criticizing Democrats for hiring a convicted felon to lead a "blocking campaign" to dissuade voters from signing the recall petition. Dillon's supporters went to court and got an order telling recall backers to stop using out-of-state petition circulators. But Dillon is taking it seriously, sending out mail to every voter in the district.

Recalls are a dangerous game, and not just for the officials who face the recall. Most recalls fail, and in many cases, there's a boomerang effect, with the targeted politician emerging stronger and more popular from the near-death experience. Since recall campaigns tend to be bitter and personal (and backed by some weird folks), sympathy rises for the targeted politician. Just ask Dianne Feinstein, the California senator. As mayor of San Francisco, she was targeted for recall by a group that called itself -- this is not a joke -- the White Panthers who objected to her support for gun control. Since Feinstein became mayor because of the assassination of her predecessor, George Moscone, her views on the issue seemed to make a lot of sense. She overwhelmingly defeated the recall, and became so popular she eventually won a U.S. Senate seat.

Wednesday Round Up: $10 Minimum in Eureka?

Joe Mathews — Wed, 23 Apr 2008 13:43:00 -0400

ANTI-GAY MARRIAGE MEASURE HEADED FOR CALIFORNIA BALLOT: Or so its supporters say. This tracks though with information first reported here over the weekend that the initiative, at $2 per signature, had made the ballot. This is in spite of a well-organized blocking campaign by opponents. One wonders, however, why backers are spending their money. Some polls suggest that Californian is close to having a majority of citizens who support same-sex marriage, and the Republican governor has vowed to fight this.

$10 PER HOUR IN EUREKA: Signature gathering is about to begin on a new minimum wage ballot initiative that would guarantee $10 per hour to anyone working in the city of Eureka on California's northern coast.

MOMENTUM FOR COLORADO RIGHT TO WORK: That's according to its supporters, who are lining up endorsements. Business groups are backing it, but they should be wary. A frontal attack on labor is likely to unite the state's unions and turn out to be a setback for business interests. Exhibit A: California, the year 2005.

MICHIGAN HEALTH: Health care groups are getting behind a Michigan ballot initiative that would enshrine health insurance as a right in the state constitution.

BUT IN ARIZONA. Supporters of a similar health care ballot initiative are giving up. The sponsors blame John McCain for supposely suppressing fundraising for progressive causes in Arizona. Or something. It might be more accurate to blame Barack Obama; progressive donors may be thinking that a Democratic president would tackle health care nationally, and thus are saving their bucks for that fight.

ANTI ABORTION MEASURES:: The Wall Street Journal has a summary of anti-abortion ballot initiatives, focusing on the difference in approach between pro-life advocates who seek to put restrictions on abortion and others who prefer "personhood" initiatives that grant embryos the rights of human beings in an effort to ban abortion all together.

WORKING THE REFEREES: Sponsors of anti-illegal immigration initiative in Arkansas are accusing the attorney general of not playing fair. The a.g. blocked their first attempt at an initiative.

A WATER WAR IN UTAH: Residents of a Utah county want a referendum as a way to stop a state water pipeline. The pipeline would divert Colorado River water to support development in several counties. Look for more of these kinds of measures as the Western drought deepens.

Repealing Tax Changes Before They Take Effect -- Is There a Better Way?

Annette Nellen — Tue, 22 Apr 2008 14:09:00 -0400

In the past year, we have seen both Michigan and Maryland enact new taxes, only to repeal them soon thereafter and before they became effective, due to complaints. That's a lot of work for no effect. What could have been done differently?

On 12/1/07, the day a use tax on specified services was to go into effect, Michigan repealed the law (see prior blog post). More recently, Maryland repealed its expansion of the sales tax to computer services. In November 2007, the legislature added computer services to a measure designed to address a budget shortfall (see Washington Post article of 12/9/07). The tax was to become effective on July 1, 2008. Fierce opposition by the business community led to its repeal in April 2008. The tax would have mostly applied to businesses since they purchase more computer services than do individual consumers.

Back in 1987, we saw Florida expand its sales tax to include specified services, only to repeal that tax 6 months later. In 1990, Massachusetts expanded its sales tax to services, but repealed it before the effective date.

This seems like a lot of wasted effort. In Maryland, the Comptroller's Office was struggling to write regulations to help businesses be ready to comply - a project now pulled.

What night have helped lead to more productive legislative efforts and more lasting tax changes? Here are a few suggestions:

Transition: In creating a new tax or expanding an existing tax to include new taxpayers, provide sufficient time for the tax agency to provide guidance and assistance and for taxpayers to get their computer and business systems ready to handle any new collection, reporting and payment procedures. In Michigan, the expanded sales tax was enacted in October to be effective on December 1. That's not enough time for businesses to get ready to collect the tax.
Use Prior Research: Many states have had commissions to study tax reform in their states. Typically, there are hearings and months of thought and discussion. Commission final reports tend to sit on shelves. Legislators should look for such reports to see what was suggestion as typically a lot of thought and research goes into these reports. NCSL keeps a list.
Avoid Sales Tax Pyramiding: Plans to expand sales tax to more types of services should stay away from services that are primarily purchased by businesses. This will avoid pyramiding in the sales tax.
Accompany Any Base Expansion with a Rate Reduction: If a tax base is to be expanded, the rate should be lowered. Typically, a tax with a broader base and lower rate is simpler (fewer rules needed to define what is not taxed or is treated specially), can have higher compliance rates (less interest in tax planning due to lower rate), and is more neutral (fewer special rules causing the tax law to influence decisions). Base expansion accompanied with a rate reduction is more likely to be accepted as tax system improvement by taxpayers than just a base expansion.
Educate Taxpayers: Use advertising to help taxpayers understand the current flaws in the tax system and why they need to be fixed.
Fix Tax Systems in Good Times: Tax law changes made during times of budget crisis are likely to be focused more on what raises the requisite revenue rather than what makes best sense for modernizing a tax system within the principles of good tax policy.

Thursday Round Up: A Look at a Petition Firm

Joe Mathews — Thu, 17 Apr 2008 18:59:00 -0400

DEPARTMENT OF MOON HOWLING: The Las Vegas Review & Journal takes a long look at one of the country's more important signature firms, National Voter Outreach and its CEO Rick Arnold. I've interviewed Arnold in his Carson City home, and found him to be one of the more thoughtful people in the petition trade, critical of its problems and clear-eyed about its limitations. This story is built heavily around criticism from the liberal/progressive Ballot Initiative Strategy Center, which is quick to lable signature gathering as corrupt (at least in cases where it opposes the cause in question). There is a "shocked, shocked" quality to this criticism. The signature gathering business has plenty of problem workers, many of them poorly trained folks who, for lifestyle reasons, have taken a job that usually pays them in cash. But BISC and other critics invariably propopse to criminalize the process of gathering signatures, as in Oklahoma. In supporting these restrictions, liberals are hurting themselves, by establishing precedents restricting political speech that can be used by their political opponents. And such restrictions don't stop direct democracy. They merely slow it down, adding to the costs (and thus the influence of interest groups) that progressives love to denounce. The more you regulate, the more firms like National Voter Outreach will benefit.

BLOOMIE AND ARNOLD: Mike Bloomberg, deepening his involvement in California initiative politics, hosts a fundraiser tonight on behalf of Gov. Schwarzenegger's redistricting ballot initiative. It's still gathering signatures on the street.

MICHIGAN POT: Medical marijuana initiative makes the ballot in Michigan after legislature declines to adopt the measure itself. (hat tip to Ballotpedia).

INDIVIDUAL MANDATE: A ballot initiative to establish an individual mandate for health care in Michigan is now circulating on the street.

NO ANIMAL CONFINEMENT MEASURE IN COLORADO: Colorado's ballot will be a little less crowded, as animal rights advocates drop their farm animal confinement measure. The state legislature passed legislation similar enough to satisfy the initiative's backers.

OAKLAND YOUTH: Here's an interesting report on a city of Oakland (Calif.) ballot initiative to double funding for a youth services program.

NEVADA NEUTRALITY: School superintendents, never fan of teachers' union, are staying out of a coming mega-ballot war in Nevada over the union's effort to raise taxes on gaming to generate more funds for education.

MAINE DEBATE: A referendum question has been submitted in Maine that would remove "sexual orientation" from human rights and discrimination law, and bar same-sex marriage and adoption by gay couples.

PARENTAL NOTIFICATION: Here's a description of another attempt, via California blalot initiative, to require parental notification for minors seeking abortions. A similar initiative went down in the 2005 special election. Over the past week, I found this initiative was a low priority for the state's signature gatherers. It's pay $1 or less a signature, half the price being paid by sponsors of redistricting, crime victims' rights, and alternative fuel measures.

FROM OVERSEAS: Croatians won't get to vote on their country's decision to join NATO.

Michigan Will Tax More Services

Annette Nellen — Tue, 02 Oct 2007 01:00:00 -0400

Michigan enacted changes to its sales tax that expands it to cover 23 additional services starting 12/1/07 (HB 5198 signed 10/2/07). The services now subject to sales tax include:

landscaping
bail bonding
balloon-o-grams
astrology, palm reading, fortune-telling and numerology
coin-operated blood pressure testing machines
party planning
house sitting
shoe shining
wedding planning
packaging and labeling
skiing
travel and reservation
courier and messenger
personal care except hair care
personal fitness trainer
personal shopper

Thus, the state is better recognizing that the sales tax is a consumption tax and services are a type of consumption (not only tangible personal property can be consumed). They are also recognizing that as consumer spending on tangible goods decreases while consumption of services an intangibles (including digital downloads) increases, changes are needed to preserve the sales tax base. For more information on modernizing state sales tax, see my report and recent op eds - here.

Hopefully Michigan will provide technical and financial assistance to the businesses that must start collecting, reporting and remitting sales tax as it can be a bit complicated, require new software systems and assistance of tax professionals. Many of the businesses that will need to start collecting sales tax are probably calendar year businesses. One thing that would have made the new task a bit easier is for it to start on January 1 rather than December 1. That's not much time to get ready in either case though (causing headaches for both businesses and the Michigan Department of Treasury).

Michigan also raised its income tax from 3.9% to 4.35%. These changes were made to address a budget deficit. (more from Traverse City Record Eagle)

What do you think?

This post was originally published at http://21stcenturytaxation.blogspot.com.