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As Michigan taxes go lower, so do personal incomes

Had enough yet?

This will not even be an issue raised in the next governor’s campaign, because all the “serious” candidates are in on this, but the powers that be are driving this state’s economy into the ground with a tax-cut-driven economic development strategy that has proven itself to be is one of the biggest cons government perpetuates on the people.

The only way we know about this is because gubernatorial candidates like Abdul El-Sayed, who visited the Copper Country last month, raised this issue. Reporter Graham Jaehnig then followed up with stories confirming the cold, hard facts and figures.

The results of this trickle-down-based strategy speak for themselves. College graduates are leaving because wages are too low, which further drives down income for all workers. High-wage employers are leaving the state to go where the talent is concentrated, because capitalism thrives on human capital, not corporate capital.

Study after study shows lower taxes do not increase wealth of regular people — it decreases it. Jaehnig’s investigation found that before the tax-cut regime became a pillar in state government, Michigan taxes were 3 percent above the national average, with income 3 percent below. By 2004 taxes were 3 below and income 6 percent below.

Yet the politicians kept pushing this losing strategy, and by 2013 taxes were 12 percent below the national average, and income 12 percent below.

The solution is self-evident: stop genuflecting to corporations and instead start preparing, retaining and attracting human capital. Provide tax incentives open to all businesses and those businesses that actually invest in human capital.

For example, instead of tax cuts exclusively for corporations, discount taxes for any business, including small businesses, that pay wages above a certain level — such as 200 percent of the minimum wage — for high-skill jobs.

The powers won’t support that. Why? Follow the money.

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