3. January 2005 • Murph
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The Detroit News has an article on proposed city income taxes in Ann Arbor, Ypsi, and Mount Clemens, including a complaint from a commuter that non-residents would be subject to the tax without an opportunity to vote on it:
“It’s like taxation without representation,” Rob Nicholl said . . . Nicholl, a native of England, now lives in Pinckney and commutes to his engineering job at Ann Arbor’s Federal-Mogul. “They could just be getting back (at me).”
The News also runs an editorial calling local income taxes “a desperation move that cost jobs, and ultimately tax revenue,” noting that while the University of Michigan is a “captive” employer, others (like Pfizer, Proquest, etc.) are not.
A poll on whether readers would support a local income tax shows 91% polling against, with comments indicating that the Detroit News’ readership is probably made up of TJ and the Michigan Review staff.
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—Hillary Jan. 4 '05 - 11:57AM #
At any rate I seriously doubt an income tax will happen.
—Matt Jan. 4 '05 - 03:53PM #
“We need to get rid of every single parasite in Lansing, and restrict how much time they spend in session to reduce the harm they inflict on the people.”
“We all know that it is virtually impossible to get rid of dead weight in the government. If we had people who would genuinely work for their pay we wouldn’t be in this mess.”
“We already eliminated the ability of the citizen to own property and now require them to pay RENT (“property tax”) which if they don’t pay results in their eviction and loss of their home or business.”
—Murph Jan. 4 '05 - 07:21PM #
—Edward Atkinson Jan. 5 '05 - 03:30AM #
The damn companies don’t have to leave very far – if Ann Arbor imposes an income tax on commuters, it would be an extra incentive for companies to set up shop in Scio/Pittsfield/Ypsi Townships instead of in Ann Arbor. (Proquest, for example, is in the process of consolidating from a Scio location plus an Ann Arbor location to just an Ann Arbor location, I believe – if their employees were unhappy about paying a commuter income tax, it’s likely they would have consolidated into the Scio location instead.)
By causing businesses to locate outside of the city – but still in spitting distance of UMich’s research, if they care – an income tax could reduce the property tax base that maintains Ann Arbor’s roads, parks, police, etc, as well as increasing development (almost definitely car-dependant) in the surrounding area, and therefore increasing congestion, etc, in out-county areas. Blah.
—Murph Jan. 5 '05 - 11:47AM #
“why give up the first-rate research here at UM?”
There are plenty of places in the country doing research. Last I heard (and granted, that was 2 years ago), the UofM was having a serious problem recruiting researchers to work at the LSI. A city income tax certainly isn’t going to help them.
Corporate taxes may not force the current companies to leave, but it will weigh heavy on the minds of companies considering Ann Arbor in the future.
—Hillary Jan. 5 '05 - 12:11PM #