Current Issues
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Right To Work In Michigan |
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Written by Kyle Celebuski
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Monday, 03 October 2011 20:06 |
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Throughout Michigan's history, the state has been renowned for the power and number of its unions. The most prominent unions in Michigan are the United Auto Workers and Michigan Education Association. Proponents claim that unions look out for workers, guaranteeing them rights and negotiating higher wages and better benefits which they couldn't get if they were dealing with their employer alone. Opponents of unions say that they abuse their power enabling workers to get wages and benefits exceeding what they deserve and should get based on their performance.
In Michigan, there is a push from to pass a Right to Work (RTW) law in which employees are not required to join a union if they do not want to, enabling them to stay independent of a union in their workplace even if a majority of people working are a part of one. This idea is causing major debates between political parties and is a hot topic nationally. Twenty-two states currently have a RTW law.
Unions worry that RTW laws may lead to losses in revenue from union dues and are also concerned that these laws make them less influential in policmaking. RTW advocates argue that this decrease in union power has, in other states, encouraged more businesses to move in and invest due to the increase in production security as a result of the decreasing chance of effective strikes delaying production. People in support of this idea use this information as proof that the law would benefit Michigan and by making it more enticing to possible employers which would increase jobs and also increase much-needed tax revenue.
Unions have also questioned the ability of companies to move their operations across state lines, as in a recent case involving Boeing. The airplane manufacturing company recently moved its production from Washington, where union membership is mandatory, to South Carolina, a RTW state. Unions have filed suit, claiming that this was an unlawful way to discourage future strikes in Washington. Boeing argues that the company moved out of necessity and that they could not "afford a work stoppage every three years," which has been the case in Washington (Boeing and the Union Berlin Wall).
Republican control of both houses would normally indicate that some sort of legislation will be passed in Michigan. However, labor union influence, Governor Rick Snyder's refusal to take a stand in the issue, and many other pressing issues which the state is dealing with may leave this issue unresolved in the near term.
http://www.freep.com/article/20110918/NEWS15/109180490/Right-work-debate-fires-up-among-Michigan-lawmakers
http://washingtonexaminer.com/blogs/beltway-confidential/2011/02/strong-argument-favor-right-work-featuring-fa-hayek
http://online.wsj.com/article/SB10001424052748703730804576317140858893466.html Boeing and the Union Berlin Wall ARTHUR B. LAFFER AND STEPHEN MOORE
http://www.mlive.com/politics/index.ssf/2011/09/rick_snyder_nixes_right_to_wor.html
http://www.lansingstatejournal.com/article/20110909/NEWS04/109090338/Michigan-Senate-leader-wants-right-work-teachers |
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Taxes on Public Sector Pensions |
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Written by Kyle Celebuski
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Monday, 19 September 2011 20:15 |
As a candidate, Rick Snyder vowed to turn around Michigan's economy. As governor, Snyder is attempting to accomplish that campaign promise with a series of tax changes. One of the significant policy shifts concerns taxes on public sector pension and retirement plans, which the governor believes will generate badly-needed revenue while making the tax code more equitable.
People who worked for government at the federal, state and local level and who qualify for pension benefits previously exempt from taxation are strongly opposed to the new tax. They claim the act is unconstitutional because it would violate a ban on a graduated state income tax, an issue which is being debated in the Michigan Supreme Court. Retirees are most concerned because if this plan goes through there would be a sudden decrease in the money they now rely on and that they worked so hard for.
While opponents of the plan have made it seem radical and unfair, there have been compromises and certain exemptions have been created to ease retirees into this tax. These exemptions are intended to not radically change the lives of retirees, with exemptions for those who were born before 1946 for instance making them completely unaffected by the new tax, and with many other exemption plans designed to ease the process of the tax by having fewer and fewer exemptions in the following years. Through these exemptions, Snyder plans on limiting the income lost on those who rely on their pensions to survive, say those with a pension and retirement income of less than $20,000 for an individual or $40,000 for a joint return, while excluding people with a household income of over $75,000 for an individual or $150,000 for a joint return, thus trying to distribute the taxes in such a way so that the poor are not overburdened.
For people who were born after 1952 the proposed law states that no exemptions may be filed until the person reaches the age of 67, thus taxing those who have not been relying on retirement and pension plans for very long, if at all. |
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Michigan Lawmakers Work to Balance the Budget |
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Written by Andrew Kuhlman
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Thursday, 23 September 2010 01:25 |
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As Oct. 1 quickly approaches, Michigan's Legislature is racing to try to balance the budget. Michigan faces a $302 million deficit and a projected $484 million shortfall. Additionally, Michigan has missed the budget deadline in the past two of three years. Last year, the deadline was extended one month to Oct. 31 and in 2007, the State government was forced to close down for several hours while the legislature tied up the loose ends. However, many Democrats and Republicans are feeling optimistic coming into the final week of the fiscal year.
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Granholm Supports Taxes for Education Funding |
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Written by Gennafer Musial
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Wednesday, 31 March 2010 23:49 |
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In an attempt to save education funding from the throws of an unstable economy, Granholm supports extending taxes to cable services.
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Budget Update- Veto Threatened as Six Bills Remain Unsigned |
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Written by Patrick Heffner
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Monday, 12 October 2009 20:37 |
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Governor Granholm today demanded that Republican Senate Majority Leader Mike Bishop pass on 6 budget related bills today, which are currently being delayed in the Michigan Senate. This latest row has heightened drama in the state, already running under a temporary budget approved right before the October 1st state deadline. Granholm has already signed some budget related legislation, including for the important corrections department. However, with items like higher education and human services still not before Granholm, the state appears weeks away from another state shutdown, this time without the option of passing a temporary budget.
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