No new revenue – even if the voters want it

With drastic cuts in state revenue sharing and a sharp drop in property tax receipts, local governments all over the state are starved for revenue to keep basic services like police and fire protection and snow removal going. Enter Rep. Marie Donigan, who sponsored HB 5059, a bill that would allow local governments to impose an excise tax on alcohol served by the glass — but only if the voters actually vote for such a tax.

The House Tax Policy Committee heard testimony on this bill last week but even if it gets past the House it is almost certain to die in the Senate, as Tim Skubick noted on his blog.

If local voters say yes to a tax, that could be anywhere from a penny a glass to fifty cents, then all the money would stay in that community to keep cops on the beat and fire fighters on their trucks. If they say no, so be it and the tax is not imposed.
Who could oppose that?

Let’s start with legislative republicans. They have consumed so much anti-tax increase kool aid that they can’t even see the brilliance of this proposal. They are not the ones increasing taxes; they’re just letting the citizens back home do that. Yet, and here’s the kool-aid part, anything that even hints of a tax increase is foreboden under the GOP anti-tax dogma.

This must drive Rep. Marie Donigan nuts as the Royal Oak Democrat quietly concedes her brain storm is going nowhere fast. Even if it got through the house, Sen. Mike Bishop and company will just sit on the thing until it died in the senate.

Sadly, he’s right. The Senate Republicans have steadfastly refused to do anything to raise revenue, insisting on cutting billions of dollars out of the state budget — and in the process helping gut local budgets as well. Now they won’t even allow local communities to vote for their own revenue increase to keep vital services open.