Michigan’s highly regressive tax structure
(revenues depending more on sales tax than
income tax) places an unfair burden on low
and moderate income taxpayers. A graduated
income tax would provide more fairness and
generate more revenue. This requires a
change in our state constitution and a vote of
the people. In the interim, a gap of $1.6 billion
in the 2008 budget must be addressed to
support current needs. This cannot be done in
Michigan’s present condition without significant
tax increases.
Jesus, one of the great moral teachers of all
time, may have an important lesson for us in
rebuilding our society. His “great
commandment,”
His reminder of how we will be evaluated
at the end of time (Mt.25), His answer to
the question of His time: “Who is my
neighbor?” points us in the right direction.
The American Catholic Bishops in their 1986
letter “Economic Justice for All” spelled out
the implications of Christ’s answer to modern
society: “All members of society have a special
obligation to the poor and vulnerable.
From Scriptures and church teaching we learn
that the justice of a society is tested by the
treatment of the poor.” (#15)… “First, the tax
system should raise adequate revenues to
pay for the public needs of society, especially
to meet the basic needs of the poor.
Secondly, the tax system should be structured
according to the principle of progressiviity so
that those with greater financial resources
pay a higher rate of taxation.” (#202)
Perhaps the greatest need of all is for Michigan
citizens to recapture that sense of communal
responsibility and concern for one another. It is
the only way to build a great society, a great
State of Michigan.
| Michigan Economy : Healing and Hope |
| Michigan on Life Support |
The Reality
The SYMPTOMS
The SYMPTOMS
The health and well-being of the State of
Michigan over the past ten years has been in
steep decline. In almost every area the majority
of Michigan citizens are experiencing a lowering
of the quality of life standards that
once made Michigan “a premier state.”
1. The closing of all state mental hospitals
and the under-funding of Community
Mental Health has forced many mental
patients onto the streets or into prisons.
2. The number of people living under the
federal poverty level in Michigan has
increased by 26% since 2000 (1 of 5
Michigan children lives below the poverty
level).
3. Rising health care costs and related
insurance rates, and restrictions in the
Medicaid program, have left 1.2 million
people without access to healthcare
coverage.
4. Public education (primary, secondary
and university) have all fallen on hard
times. Successful pre-school and primary
programs have been dismantled, highschool
dropout rates continue to increase,
steep tuition raises make a college
education unattainable for many.
5. Michigan roads and public transportation
have been an increasing obstacle in
enabling people to get to jobs and discouraging
good business prospects from
locating in Michigan.
6.Reduction in police,fire department, EMS
and other public service agencies have re-
sulted in higher crime, needless deaths, less
security and increasing fear that these
services will not be there when we need them.
7.Reduction or elimination of public support
for our cultural institutions (the Zoo, the Detroit
Institute of Art, the Symphony, and other art
theatre and programs).
8. Prison overcrowding with no enlightened
program for rehabilitating and releasing non-
violent criminals places a crushing financial
burden on state resources without a
compensating gain in security.
Michigan over the past ten years has been in
steep decline. In almost every area the majority
of Michigan citizens are experiencing a lowering
of the quality of life standards that
once made Michigan “a premier state.”
1. The closing of all state mental hospitals
and the under-funding of Community
Mental Health has forced many mental
patients onto the streets or into prisons.
2. The number of people living under the
federal poverty level in Michigan has
increased by 26% since 2000 (1 of 5
Michigan children lives below the poverty
level).
3. Rising health care costs and related
insurance rates, and restrictions in the
Medicaid program, have left 1.2 million
people without access to healthcare
coverage.
4. Public education (primary, secondary
and university) have all fallen on hard
times. Successful pre-school and primary
programs have been dismantled, highschool
dropout rates continue to increase,
steep tuition raises make a college
education unattainable for many.
5. Michigan roads and public transportation
have been an increasing obstacle in
enabling people to get to jobs and discouraging
good business prospects from
locating in Michigan.
6.Reduction in police,fire department, EMS
and other public service agencies have re-
sulted in higher crime, needless deaths, less
security and increasing fear that these
services will not be there when we need them.
7.Reduction or elimination of public support
for our cultural institutions (the Zoo, the Detroit
Institute of Art, the Symphony, and other art
theatre and programs).
8. Prison overcrowding with no enlightened
program for rehabilitating and releasing non-
violent criminals places a crushing financial
burden on state resources without a
compensating gain in security.
T H E C A U S E S
The massive problems creating the Michigan crisis do not have a
single source nor a simple solution:
1. The tailspin of the Detroit auto industry due to foreign
competition, export of manufacturing jobs as well as escalating
health care costs.
2. Michigan’s tax system is out of balance when compared to
stable and successful
states of similar size. Not a heavily taxed
state, Michigan is ranked 25th in the nation
in terms of cumulative state taxes.
3. Cumulative tax cuts since 1994 have
reduced state revenue in 2006 by $3.2
billion.
4. State government employs 7,000 fewer
people today than in the year 2000, yet
services must be provided for 1.3 million
more residents.
5. State funding for local government services
has been cut by 62%.
6. Funding for public schools has been reduced,
placing a good number of school
systems in danger of bankruptcy.
7. Higher education funding has been reduced
by 22%, leading to large tuition
increases this year.
8. Cuts of over $2.9 billion in health care
services have resulted in a health care
crisis for many Michigan residents, including
children (180,000 children not covered
by any program).
9. Reductions of 18% in human services
have resulted in a weakened child welfare
system and a frayed safety net for persons
who need help in meeting their basic
needs.
Statistics from Michigan League for Human
Services, February 2007
The massive problems creating the Michigan crisis do not have a
single source nor a simple solution:
1. The tailspin of the Detroit auto industry due to foreign
competition, export of manufacturing jobs as well as escalating
health care costs.
2. Michigan’s tax system is out of balance when compared to
stable and successful
states of similar size. Not a heavily taxed
state, Michigan is ranked 25th in the nation
in terms of cumulative state taxes.
3. Cumulative tax cuts since 1994 have
reduced state revenue in 2006 by $3.2
billion.
4. State government employs 7,000 fewer
people today than in the year 2000, yet
services must be provided for 1.3 million
more residents.
5. State funding for local government services
has been cut by 62%.
6. Funding for public schools has been reduced,
placing a good number of school
systems in danger of bankruptcy.
7. Higher education funding has been reduced
by 22%, leading to large tuition
increases this year.
8. Cuts of over $2.9 billion in health care
services have resulted in a health care
crisis for many Michigan residents, including
children (180,000 children not covered
by any program).
9. Reductions of 18% in human services
have resulted in a weakened child welfare
system and a frayed safety net for persons
who need help in meeting their basic
needs.
Statistics from Michigan League for Human
Services, February 2007
The Cure: Healing and Hope
A C T I O N S T E P S
The best way we can exercise our communal responsibility
is to communicate directly with our state legislators,
especially members of the Senate. Letters, e-mails, phone
calls, and visits from constituent delegations are effective.
Let’s make our voice heard on this very important issue.
Information/contacts:
senate.michigan.gov/Senatorinfo/find-your-senator.htm
house.michigan.gov/find_a_state_rep.asp
Senate information: (517) 373-2400
House information: (517) 373-0135
Michigan Catholics for the Common Good
P.O. Box 7064
Huntington Woods, MI 48070
(313) 804-0607
The best way we can exercise our communal responsibility
is to communicate directly with our state legislators,
especially members of the Senate. Letters, e-mails, phone
calls, and visits from constituent delegations are effective.
Let’s make our voice heard on this very important issue.
Information/contacts:
senate.michigan.gov/Senatorinfo/find-your-senator.htm
house.michigan.gov/find_a_state_rep.asp
Senate information: (517) 373-2400
House information: (517) 373-0135
Michigan Catholics for the Common Good
P.O. Box 7064
Huntington Woods, MI 48070
(313) 804-0607
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