Opinion by Roger McMillan
We all hate taxes, but until Government stops spending, the conversation must be of what kind of taxes we pay, not simply what we don’t pay. The proponents of a possible 2026 constitutional amendment called AxMiTax
(https://www.axmitax.org) have an appealing title that implies a reduction of taxes for regular people, but this is misleading.
According to proponents, AxMiTax reduces nothing, but rather shifts how money is collected from property to something else, probably a large rise in the sales tax everyone in Michigan pays.
Of the three major types of tax: property, sales and income, property tax is the least bad. It is collected and spent locally providing citizens more influence than money that goes
through Lansing.
Secondly, property ownership is something a person chooses to pay as part of buying land. You choose what your lifestyle can afford. If that property is your home the amount you pay is protected against market value increases. Also, property taxes are proportional. The owners of lakeside McMansions pay tens of thousands of dollars, as do business and owners of large tracks of land. Normal home owners pay far less, and can predict what taxes will be in the future.
Further, out-of-state individuals and corporations who own land in Michigan all pay property taxes, which flows directly to local Michigan Governments. In some rural or resort communities this out-of-state money accounts for the major part of revenues. Finally, property taxes create a natural alliance between local Government and property owners. When property gets more valuable the local Government gets more money. This changes the behavior of local Government in a thousand subtle ways that protect and enhance property values.
If AxMiTax is enacted five qualities of property tax, local influence, choice of taxes amount, proportional amounts, out of state revenues, and the natural alliance with local Government, will all go away. In its place would be revenue from other taxes paid by Michigan residences flowing through the state capital. Political power follows the money. State Government would dispense what used to be local monies. Political power currently
with local Government would move to the state.
AxMiTax would create winners and losers based on who does not pay property taxes, and who pays the replacement taxes. The biggest winners will be out of state land owners,
business, and owners of really expensive homes. Regular home owners will see a reduction in property ownership costs, but will pay more through the replacement taxes, so for them it’s about the same. The biggest losers are those who don’t own land or own
inexpensive homes. They will bear the weight of the replacement tax while getting little or no benefit from the change.A clear-eyed examination of AxMiTax reveals that it’s a very bad idea for most Michigan residents, and should be opposed.
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