Michiganians support boosting income taxes on the wealthy, giving filmmakers the most generous tax credits in the nation and paying a flat fee per vehicle to support state parks, according to a Detroit News/WXYZ poll.
But they are evenly split when it comes to paying higher utility bills to support the state’s renewable energy initiative.
Taxes, diversifying the economy and green initiatives are among the issues lawmakers and business leaders will discuss as they gather on Mackinac Island beginning today for the Detroit Regional Chamber of Commerce’s annual policy summit.
Nearly twice as many Michiganians favor a graduated income tax that would lower the tax rate on the poor. The survey of 600 registered voters by EPIC-MRA of Lansing found 60 percent favor a graduated income tax as a replacement for the state’s 4.35 percent flat tax on income for everyone while 33 percent oppose the idea. The poll, taken May 18-21, has a margin of error of 4 percentage points.
Discussions about changing the state’s constitution to allow a graduated income tax have been growing as the state’s revenues from taxes fall short of meeting its spending needs. The state had to make cuts of more than $300 million and use $1 billion in federal stimulus money to help plug a deficit that’s expected to grow to $1.7 billion next fiscal year. “It’s fair. The more money you make, the more you pay out,” said Carrie Davie, a retired nurse from Detroit, who took part in the poll.
But Cheryl Rafdal, a 53-year-old Rochester Hills mother of two, thinks it’s a bad idea. “People who have money are the ones who keep the economy going, and if they get taxed even more they won’t go out to eat or shop or buy new cars, and then everything will come to a screeching halt,” she said.
Bernie Porn of EPIC-MRA said he believes the support for the graduated income tax is a carryover from debate during last year’s presidential contest over the fairness of tax proposals. The survey shows Democrats are far more likely than Republicans to support a graduated income tax by 78 percent to 34 percent. And 59 percent of independents back the proposal. Two-thirds of women respondents favored the graduated tax to more than half of men respondents. The last time Porn polled Michigan residents on the graduated income tax issue was June 2007 when 57 percent supported the idea and 33 percent opposed it.
Film tax credit gets support
A maximum 42 percent tax break for filmmakers who shoot movies in Michigan has its backers and its detractors. Some say it is bringing a new industry and high-paying jobs to the state; others say the $100 million cost of the state credit this year is too big of a price to pay.
But the film tax credit drew overwhelming support from poll respondents. The survey shows 70 percent favor it to 21 percent opposed.
We had ‘Gran Torino’ made here and had nothing but positive feedback about it from folks in the Pointes,” said Lori Zurvalec, a 54-year-old lawyer from Grosse Pointe. “People were very excited about it.” Dustin Waugh, a 37-year-old bricklayer from Westland, favors the tax credit but has doubts about its long-term viability. “It’s bringing jobs and excitement into Michigan, which I’m all for. I’m just not sure it’s going to last,” he said. “What happens when another state goes to a 43 percent tax credit? I’m not sure this is a long-lasting job opportunity.” Support for the movie incentive is strongest among voters in Metro Detroit at 82 percent versus 63 percent in the rest of the state.
