Still seething over Gov. Snyder’s education cuts and alterations to the School Aid Fund, Rep. Jon Switalski is proposing a graduated income tax with additional revenues earmarked for K-12 schools.
“If we continue to starve our schools of essential resources, our students will not be able to learn and succeed – it’s that simple,” the Warren Democrat said in a press release.
“We will not be able to create the talented workforce we need to keep and attract top-notch employers. By modernizing our tax structure so that it’s fair and equitable, we can maintain a steady investment in our schools and focus on really making progress toward an economic recovery.”
Switalski’s three-part plan calls for:
* Switching to a graduated income tax and designating that a fixed percentage of it goes to the state School Aid Fund, which helps finance K-12 education.
* Closing tax loopholes for gas and oil companies and earmarking the resulting revenue for the School Aid Fund.
* Ensuring that this revenue is used properly by banning the Legislature from using School Aid Fund money for any purpose other than K-12 education.
Michigan voters have rejected a graduated income tax, which requires a constitutional amendment, three times in the past. But Michigan is in a distinct minority of states with a flat tax.
More than three dozen states have a graduated income tax, which requires higher earners to pay a higher percentage of their income. Switalski did not say what rates he has in mind but the lawmaker said that support for a graduated income tax continues to grow, based on a recent EPIC/MRA poll showing that 64 percent of voters support it. The vast majority of filers would pay less under a graduated income tax structure, he said.
“For the sake of our kids and our economy, Michigan needs to catch up with the rest of the nation and follow the principle that well-off taxpayers should pay their fair share so that middle-class and lower-income families can get a break,” Switalski said.
“Modernizing Michigan’s tax structure will end the roller coaster ride that the state puts our schools on each year – a debacle that puts the quality of our schools at the mercy of a sudden surplus or the political mood of the moment. If we’re serious about preparing a workforce that will protect and attract top-notch jobs, let’s move forward right now with a long-term solution that truly supports education.”

