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Just how does a politican decide whether or not to back an income tax rollback

Zoe Clark: It's Just Politics, I'm Zoe Clark.

Rick Pluta: And, I'm Rick Pluta.

ZC: And, Rick, I think it’s only fair to say that Democratic lawmakers at the state Capitol are not happy.

RP: Indeed, they’re mad.

ZC: Mad about the passage of an income-tax reduction.

RP: And they made their point known on the House floor.

ZC: So, of course, when it came time to actually vote, Democrats rallied together and voted a resounding, “No.”

RP: Whoa, whoa, whoa, Zoe, don’t go that far. Yes, they railed against it. Said it’s too little by way of “tax relief” – that phrase that gets tossed about when we’re discussing tax cuts -- for middle class families compared to all the tax exemptions and credits that were scrapped last year by Republicans in the name of tax fairness.

ZC: Democrats say this is the wrong use of $90 million earmarked for so-called “tax relief.” They say it’s also pretty paltry and that Republicans are just playing election year politics. But they still voted for it. So, what gives?

RP: Well, for one thing, they couldn’t stop it. Republicans have enough votes in their majority to pass what they want without cutting a deal with Democrats. So,  for Democrats, it’s go along or vote against that so-called “tax relief.”

ZC: So, are Republicans playing politics?

RP: Of course not. Just ask Representative Jud Gilbert, who chairs the state House Tax Policy Committee.

Rep. Jud Gilbert: "I kind of take exception with the idea that this is somehow political pandering... election year politics."

ZC: So, it’s just a coincidence, of course, that one of the income tax rollback bills is sponsored by Republican Representative Ed McBroom.

RP: Who represents a 51 percent Democratic seat in the western U.P. and can expect a tough re-election fight... a coincidence.

ZC: And, another bill by Representative Holly Hughes.

RP: A Republican in a 52 percent Democratic seat.

ZC: And the new bill to reduce the income tax every year for the next six years... well that, too, belongs to a Republican: Representative Nancy Jenkins.

RP: In a marginally Republican seat – 53 percent – but is expected to face a tough re-election fight.

ZC: Not at all political, five months before the November election. Glad that’s settled. Rick, let’s talk a little bit about this new tax-cut double-down. Representative Nancy Jenkins’ bill would cut the income tax rate to 3.9 percent by 2018.

RP: This is a page pulled from the playbook of Governor John  Engler. In 1998, he was faced with a dilemma. The 1990s were a fiscal delight.

ZC: A financial cornucopia!

RP: The economy was so good, revenue was pouring in. The Lansing political class was able to cut taxes and increase spending at the same time.

ZC: Those were the days.

RP: But by 1998, the governor and the Legislature had really cut taxes to the point where the state could not cut them any more and still fulfill its obligations.

ZC: This was a problem for a man who liked to be called “Governor Tax Cut” and had proposed a tax cut in every one of his State of the State addresses.

RP: So, John Engler solved his political problem by proposing a string of income tax cuts that would play out over five years – would continue even after he left office. Problem solved.

ZC: Except, it created another problem, in the 2000s, the Michigan economy tanked, revenue choked off.

RP: So here we are again with the same basic idea. And Democrats say it’s just more politics.

ZC: So, they’re against it.

RP: Well, sort of. Actually they say it was their idea first. They proposed a bigger reduction in the state income tax right this year, but Republicans said “no,” stole their idea, and then tweaked it to spread it out over a longer period of time.

ZC: But it’s still the same basic idea. So, they’re ready to support it?

RP: Whoa, whoa, whoa… No one said that. Democrats won’t commit to vote for it.

ZC: So, the lesson of the day might just be: if you can’t beat ‘em, join ‘em.

RP: And, if you can’t join ‘em, try and beat them even harder.

ZC: Rick Pluta is Lansing Bureau Chief for the Michigan Public Radio Network.

RP: And, Zoe Clark is the resident political junkie at Michigan Radio.

 

Zoe Clark is Michigan Public's Political Director. In this role, Clark guides coverage of the state Capitol, elections, and policy debates.
Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.