No-Splost in Michigan

Michigan Voters Give Decisive 'No' To Tax Hike 05/07/2015 06:45 PM ET

Taxes: The left often argues Americans will gladly pay more taxes for education, infrastructure, climate change, poverty alleviation and other grandiose social justice dreams. In fact, voters just keep saying no.

Another "no" happened in Michigan on Tuesday, with just shy of 80% of voters — four out of five — clobbering a ballot measure that would have raised the sales tax from 6% to 7% and other fees on cars to pay for more roads, highways, schools, etc.

No other ballot initiative in at least a generation and perhaps ever in the state of Michigan has been so thoroughly routed. You think the voters might have been sending a message to Lansing?

There's lots of speculation about why voters of both parties en masse revolted against the political class.

But the folks at the conservative Mackinac Institute provided the best explanation we've heard: "We've already seen state revenues surge by $3.7 billion over five years," says Mackinac President Joe Lehman. "Why should Michiganders think you'd spend this new money any better than the billions you already have?"

It's a good bet voters all over the country feel pretty much the same way. First get rid of the waste, duplication, fat pensions and the welfare fraud, and then maybe you can have more of our money.

By the way, the Michigan tax increase/money grab initiative was especially disheartening because it was sponsored by Republican Gov. Rick Snyder. Of course nearly all the road builders, unions and chambers of commerce were salivating over the idea of more money to line their own pockets. These groups and others raised an estimated $10 million war chest to push the initiative — and that was compared to less than $2 million spent to defeat the measure.

Snyder argued that for Michigan to return to being a first-rate state, it needs high-quality roads and bridges.

Sure, but this measure was a farce. Of the $2 billion to be raised, only about $1.2 billion was for highways.

The rest was bribe money to win Democratic votes by spending on schools, transit, municipal slush funds, an earned income tax credit, and other social programs. In other words, the tax hike became a Christmas tree.

As in almost all states, one reason infrastructure is in disrepair is the excessive costs of building public works, thanks to the inflated union pay scales that can add 10% to 25% to the costs of projects.

Politicians would rather fleece taxpayers than fix that problem. Mackinac identified more than $2 billion in spending cuts — savings that could be spent on roads. The politicians in Lansing would have none of that.

So voters wisely slam-dunked the political class revenue grab. What's the lesson?

First, Republicans are going to be killed if they become a tax-hike not a tax-cut party. And, second, the tax revolt is alive and well in America. There is nowhere in America where government is underfunded. Tax money is spent inefficiently and unwisely, and it mainly enriches special interest groups, from teachers unions to corporate cronies.

It's nice to know voters in Michigan — and hopefully other states, too — are on to this racket.

 

Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/050715-751579-voters-not-keen-to-raise-their-own-taxes-michigan-vote-shows.htm#ixzz3Zgx9LNio