Get rid of the sales tax!

Michigan Student Caucus Proposal Template for  Summers-Knoll Students 2019 Part 1: BACKGROUND AND RESEARCH PROCESS due Oct 22 Context

 

  1. What is a current bill or law that relates in some way to your proposal? Use the legislative database found here: sams: SB 0058 of 2019    Mavericks: HB 4824 of 2019

  2. How would this bill make a difference in the lives of students across Michigan? They would not have to pay sales tax.  People could do all of their shopping on that day and not have to deal with a sales tax when they purchase most things 

  3. How and where did you learn about the issues underlying your proposal? School. When I bought things in Michigan. 

  4. Link to your media artifact(s) giving background on the issue: http://michiganstudentcaucus.org/sites/default/files/sales%20tax.pdf

https://docs.google.com/presentation/d/1GnbsmUzsygKfVo24-8CyzRzi4Q0P_eWA3khqbqriIik/edit#slide=id.g614968f04e_0_125

 

Research process

 

  1. To whom did you talk about this issue to learn more? An economist. Nobody.

  2. What did you initially think about your topic and how did your thinking change over time? I thought it was annoying then found out about how it was regressive. I like sam thought it was annoying to have to pay the extra amount and might be hard for other people and then realized that it goes to important things (see my artifact slide #5).

  3. What was the most significant article/video/report/website that you used and how did it impact your research? https://www.mic.com/articles/6038 5/abolish-the-sales-tax it was the main article I researched with. 

https://www.sapling.com/4869910/what-sales-tax-used

This is where I found where sales tax goes after it is collected by the government.

Part 2: FORMAL PROPOSAL due Oct 29 Preambulatory clause WHEREAS In Michigan, the sales tax is set at 6%, which is the same as 3 other states (Idaho, Kentucky, and Maryland). Michigan has the 38th lowest state sales tax.  WHEREAS If one buys a $20.00 item in Michigan, the sales tax would be $1.20.This amount may not seem like a lot of money, but if one buys something expensive or if the purchaser is a low-income individual, the extra cost will be a lot more noticeable or difficult to afford. 

 

WHEREAS If someone buys something in Michigan for $600, the sales price would be $636.00, which is a much more noticeable increase due to sales tax than a $4 item would generate. 

WHEREAS People who have higher-incomes might not notice the extra amount added to their purchase compared to a young person or someone with a low income.

WHEREAS If you are a kid and you have been saving up for a while for an expensive item, and you then realize that you have to pay more money for the item due to sales tax, you would have to save for longer in order to make your purchase.



 

Operative clauses

THEREFORE BE IT RESOLVED….

1. Michigan lower the sales tax rate to 5%.

2. That Michigan raise the income tax to 16% (or by 26.7%

3. That Michigan raise the property tax to 5.5% (or by 27.7%).

Counter-arguments:
  1. “Sales tax supports important causes such as schools, colleges, health insurance, transportation, and other things.” 

  2. “The government needs the money that gets collected from sales tax to maintain itself and important infrastructure projects like buildings, roads, sidewalks, and many other items.”

  3. “Lower-income tax and property tax would encourage people to buy property and work in Michigan.” 

Costs and funding:
  1. What are some costs associated with your proposal People would have to pay a higher income and property tax. 

  2. How will you pay for your proposed bill? From what sources could the funding come? With a higher income and property tax

  3. Who (people or groups) might object to funding your proposal? If our bill passes (which it won’t) property owners because they would have to pay more. Also, low-income people because they would be more impacted by a higher income tax rate.

 

References:

https://www.sapling.com/4869910/what-sales-tax-used 

https://en.wikipedia.org/wiki/Sales_tax 

https://smallbusiness.chron.com/reasons-sales-tax-4323.html 

https://www.usatoday.com/story/money/taxes/2018/03/27/states-highest-and-lowest-sales-taxes/452512002/ 




 

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Total votes: 22

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