The Wyandotte news-herald. (Wyandotte, Mich.) 1943-1963, 1946-01-24
Michigan Mirror
by gene alleman

Wanted in Michigan: A master
plan of taxation.
The present scramble of govern
mental units in Michigan for a
share of the promised $4,000
surplus in the state treasury on
July /. 1947 serves only to re-em-
phaSize the need for inter-govern-
mental distribution of tax revenues.
1t certainly does not justify the i'm
position of new and added taxes.
When the state legislature con-
venes Monday, Feb. 4, the tug-of-
war will begin.
Already legislative committees are
at work hearing appeals for part
of the states kitty at Lansing. Sem
timent to date among the house and
senate finance committees is said
to favor expanding twothirdS OF
the surplus for state educational
institutions and asylums, leaving
one-third - or approximately So
100000 - to be spent for other wor-
thy needs.
Finding a solution to Michigan's
tax problems is like looking for a
needle in a haystack. It might be
accomplished, but the chances APP
pear to be slim.
In November, 1914, just ahead Of
the 1945 general session of the leg
islature. a special tax study advis-
ory committee released a recommen-
dalton. following months Of exhaust
i've study, whereby the productive
3 per cent state sales tax would
be reduced to 2la per cent for pur-
pose of state revenue with the spec
ific authorization that any city
might impose a supplemental rate
of y of l per cent for local revenue
purposes.
Cities which elected to operate on
the 3 per cent basis would receive
one-sixth Of the tax revenues COL
lected monthly.
The goose that lays the golden egg
is the state sales tax.
Here is the most productive, pain
less and easy to-collcct tax yet con-
ceived
The little three cents on each dol
lar Of retail sales brought approx
mately 81 millions into the state
treasury during the 1888 fiscal
year, a year in which the states
expenditures EXCEEDED its rev.
enues by substantial margin.
Those were the years Of deficits and
red ink at Lansing. Deficits, in fact,
prevailed at Lansing during the fol-
lowing depression years: 1882, 1888,
1893 and 1889.
The first two years - 1882 and
1888 - reflected the tailspin Of the
stock market, bursting of the pros
perity bubble, and the Michigan
bank holiday The last two years
- 1888 and 1899 - marked the per-
iod If industrial unrest and unem-
ployment, featured by the historic
JAW shutdown strike in 1887 under
the Murphy administration.
From a 81 million revenue point
in 1883, while the treasury was
running a deficit, the golden state
tax has mounted annually. For the
1894 year it yielded 81 millions,
and in 1944-45 it rose to 1913 mil
lions. The current year, ending June
3, 1916, will see a further rise to
around 1O8 millions.
1t is easy to see that the state
sales tax has DOUBLED revenue in
Is years, and the end is not yet in
sight.
Unfortunately there is no unani-
nifty of opinion on just how taxes
should be levied and by whom.
Michigan voters have rejected a
state income tax over and over
again.
Experts go into huddles. now
commissions are appointed, and still
the answer is far from being found.
The certainty that the federal
deficit, already of staggering pro-
portions, must continue at a high
peak for many years to come, with
an inevitable price of interest an
nually, is none too re-assuring to
thrift-minded taxpayers. The cost
of running the federal government
will continue higher than ever be-
fore. Higher wages Of federal en-
ployees, retirement pensions, veter-
ans benefits and larger exnendi.