Labor Voices

Tax hike will protect state services
If businesses pay their fair share, unions can accept moderate increase

Every day in homes across Michigan, our state's residents begin a routine that depends upon the use of important public services.

So much of what our state provides and performs for us, the citizens, is now at risk because of our state's structural budget deficit. The state's budget must be balanced to protect these vital services (and more). A tax increase is now necessary.

Consider the services we depend on. We start our day with a shower, we shave, we make coffee -- all of which are made possible by a municipal water system that provides a constant supply of clean water; that system is run by licensed and experienced public employees. We flush our toilets thanks to reliable municipal sewage, septic and drainage systems, built by tax dollars.

Services at risk

We leave for work and school driving on roads and streets built and maintained by state, county and municipal road systems and many of our children ride to school on a school bus. Their drivers are paid and buses are purchased by tax dollars.

Many of Michigan's parents take their children to day care centers and other day care providers who are licensed by the state as being safe and qualified to provide care.

We eat in restaurants that are regularly inspected by local public health departments to ensure that these establishments comply with public health codes and some of the food we eat is inspected by state workers.

Some of us have elderly parents who receive in-home services or reside in nursing homes that are licensed and inspected by the state; often our residents' care is paid through the state's Medicaid program.

Local police, sheriff and fire departments keep us safe in our homes and in our neighborhoods and they are all supported by tax dollars. As we travel on the state's highways, we are protected by State Police patrols.

Rest stops along the way are maintained by the Michigan Department of Transportation, and we fill our gas tanks from pumps that are inspected for quality and accuracy by the state of Michigan. Every gallon is a true gallon because of state inspectors who are paid with tax dollars.

Public funding and benefits

Local public library systems enhance the learning opportunities available to our children and provide access to books and literature for everyone in the community.

Senior citizens benefit from the services and activities provided through local senior centers, including inexpensive meals and many other seniors receive meals at home through Meals on Wheels.

Union members understand this. Our members use the local and state parks that provide recreational opportunities for Michigan's children and families.

Rescind income tax cut

Our members and their children are far more often found in a municipal swimming pool than at a country club, but it isn't only union members or state workers who need and use public services. All of these examples are used by all of the people in Michigan.

Union members are generally willing to be part of the solution to the state's structural budget deficit and keep our services. Our members often remember that their income tax rate was reduced from 4.4 percent to 3.9 percent in 2004, and they understand some of that may have to be rescinded.

But union members also are firm in demanding that businesses in Michigan should pay their fair share.

Business taxes have been reduced more than two dozen times in the past 12 years. This has helped to produce the deficits in our state budget. Business' share of unemployment taxes have been reduced seven times in the last 12 years. The unemployment trust fund is now dangerously low.

Across the country, the overall tax burden has been shifting to individuals and away from businesses in state after state. According to the Congressional Budget Office, in 1962 individual taxes made up 77 percent of our nation's revenues, while corporate taxes made up 21 percent. Today, corporate taxes make up only 7 percent of the federal revenue while individual taxes have jumped to 90 percent.

The situation in Michigan is similar, yet our budget cannot be fixed unless we all do our part to solve Michigan's crisis.

Look for union members to support a moderate tax increase if all parties are involved in its development; if businesses pay their fair share, if the structural shortfall is addressed once and for all; and if it's good for Michigan.