LANSING, MI — Today Alma Wheeler Smith (D-Salem) criticized Senate Leader Mike Bishop and his Republican colleagues on their proposal calling for a reduction in state worker pay.
“Mike Bishop has proposed a plan that will, in part, balance the budget on the backs of our hard working public employees many of whom have already made contract concessions, accepted unpaid furlough days and taken up the slack for lost state worker colleagues as the state has struggled to balance its budget,” said Smith. “In announcing his plan, Bishop made very clear his priorities: to save the top 5% of earners in Michigan from having to pay their fair share through a graduated income tax, while asking only middle and lower income families who work for the public sector to give more and more.”
The Bishop plan also calls for ending Medicaid for those aged 18-19. This change would place tremendous burdens on families of critically ill and disabled youngsters while saving $500,000 of general fund and leaving $1.5 billion in federal match money on the table. That makes Michigan an even bigger donor state to the federal government.
“I just want to know why it always has to be a race to the bottom?” Smith said, “We have cut and cut and cut some more and it isn’t working. We need a real solution to this budget problem. The tax plan I have laid out is a long term solution that protects the middle and low income families from more reckless cuts like those the Republican Senate leadership has proposed. It’s a real shame that the only answer Bishop ever has to offer is to cut education, cut Medicaid, cut anything, as long you leave my rich friends alone.”
Smith’s tax overhaul is expected to be introduced on Tuesday. Smith announced the plan in November. The plan is a three prong approach which calls for a graduated income tax in which 85% of voters will see a decrease or no change in their current tax liability, expanding the sales tax to services and lowering the overall rate to 5.5% and the closure of business tax-loopholes which will allow the elimination of the Michigan Business Tax surcharge.
“The people of the State of Michigan are sick and tired of political rhetoric and frankly so am I.” Said Smith, “These proposals play too well in a 30 second sound bite but are terrible public policy for our State. I encourage everyone to call Mike Bishop and tell him we need real answers and sound policy not just sound bites for his next campaign.”
