LANSING – Most Michigan residents would back the state switching to a graduated income tax, an opinion poll released Tuesday showed.
The poll, conducted by the Lansing firm of EPIC/MRA for the Detroit News and WXYZ-TV, found that the largest number of those polled did not think Michigan’s economy would turn around in three to four years at the earliest. Furthermore, 11 percent of those polled questioned if the state’s economy would ever completely turn around.
The survey was conducted of 600 likely voters from May 18 through May 21. It has an error rate of 4 percent.
The survey showed that while 45 percent of those polled thought the United States was headed in the right direction (though slightly more, 46 percent, thought it was headed in the wrong direction) 71 percent of those polled thought that Michigan was headed in the wrong direction (just 20 percent thought it was headed in the right direction).
A total of 41 percent thought the state’s economy would turn around in three to four years. Another 22 percent thought it would turn around in one to two years with 17 percent saying it would take five to seven years and 6 percent saying it would be in eight to 10 years. And 11 percent questioned if the state’s economy would ever turn around.
Improving the state’s economy was far and away the most important issue facing Michigan, those polled said, with 62 percent saying it was the top issue.
And in helping the state, the largest number of those questioned said President Barack Obama’s involvement in the auto industry had hurt more than it helped. A total of 42 percent said his actions had hurt the industry, while 39 percent said it had helped.
One of the more surprising results of the survey, however, was the large majority who backed the idea of the state adopting a graduated income tax.
With a question saying a graduated tax would charge those earning higher incomes more than those with lower incomes, those polled were asked if they would favor or oppose a constitutional change to allow for a graduated income tax.
A total of 60 percent of those polled backed the idea of a graduated income tax. Another 33 percent opposed, while 7 percent didn’t know or were unsure.
The Constitution prohibits a graduated income tax, but there has been some discussion on the possibility of such a tax. An economist at Michigan State University proposed eliminating the Michigan Business Tax completely in favor of a graduated income tax.
But critics argue that the state’s flat-rate income tax is one of its few tax attractions. Enacting a graduated income tax would run the risk of chasing wealthy residents out of the state, critics say.
The survey also showed that 70 percent of those polled thought it was a good idea to offer tax incentives to the film industry. Another 21 percent thought it was bad idea because it hurt revenues needed for state services.
Legislation to reduce the tax credits given to the industry is before the Senate Finance Committee.
And the survey also found 50 percent of those polled backed a proposal that would charge motorists a $10 fee to eliminate fees to the state parks. Another 45 percent opposed the proposal.
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