Monday, 20 October 2014 / TRUTH-OUT.ORG
  • The Shell Game of Contingent Employment

    When subcontractors, freelancers and independent contractors get hurt or abused on the job, these workers are finding it harder to hold employers accountable. This is no accident - it's a direct result of a neoliberal labor agenda.

  • Paying the Price of Tar Sands Expansion

    Despite all the reasons to keep tar sands in the ground, the refining equipment tax credit has helped put tar sands development in the US on the rise, accelerating climate change at the expense of US taxpayers.

Michigan Democrats Unveil Plan to Finance Free College Tuition by Eliminating Corporate Tax Credits

Wednesday, 18 January 2012 03:12 By Tanya Somanader, ThinkProgress | Report

Michigan Gov. Rick Snyder (R) spent his first year in office trading in the welfare of thousands of vulnerable Michiganders in order to cut taxes for corporations and the wealthy. Hoping to refocus priorities in 2012, the state’s Senate Democrats have released a new plan that puts Michigan students ahead of wealthy corporations.

Under the Michigan 2020 Plan, Michigan’s high school graduates will be eligible for free tuition at one of Michigan’s community colleges or universities, where the median tuition level is currently around $9,575 per year. The program will be funded entirely by eliminating $3.5 billion in tax credits and loopholes and putting that money towards students:

“Study after study after study has emphasized the importance of a highly educated workforce in the economic vitality of any state in the 21st century,” said Senate Democratic leader Gretchen Whitmer, D-East Lansing.

Michigan currently pays out roughly $34 billion in tax credits. Under the Michigan 2020 Plan recently unveiled, $3.5 billion in tax credits and loopholes would be eliminated. Democrats put the tuition proposal’s cost at least at $1.8 billion. [...]

Under the plan, graduates who spent their entire K-12 years in Michigan schools would be eligible for the full award, which equates to the median tuition level of all public universities — currently $9,575 per year. Those who attended school for awhile outside the state would get a percentage of that amount.

College tuition has tripled in the last 30 years and is only trending upwards. Indeed, college price tags could get as high as $422,000 come 2034. And with student loans increasingly hard to find in a restricted credit market, families could certainly use the help in sending their children to a college close by.

What’s more, Michigan Senate Democrats note that the elimination of $3.5 billion in tax loopholes is only a 10 percent reduction in the tax credits the state already doles out. In fact, the program costs almost exactly as much as the $1.7 billion tax cut Snyder implemented for corporations.

The plan should appeal to Republicans as “it can be done without raising taxes one cent,” said Whitmer. “It’s not about whether Michigan can afford to do this, it’s whether we can afford not to.”

Tanya Somanader

Tanya Somanader is a Reporter/Blogger for Think Progress and The Progress Report at American Progress. Prior to joining ThinkProgress, Tanya was a staff member in the Office of Sen. Sherrod Brown (D-Ohio) since 2007 working on issues ranging from foreign policy and defense to civil rights and social policy.


Hide Comments

blog comments powered by Disqus
GET DAILY TRUTHOUT UPDATES

FOLLOW togtorsstottofb


Michigan Democrats Unveil Plan to Finance Free College Tuition by Eliminating Corporate Tax Credits

Wednesday, 18 January 2012 03:12 By Tanya Somanader, ThinkProgress | Report

Michigan Gov. Rick Snyder (R) spent his first year in office trading in the welfare of thousands of vulnerable Michiganders in order to cut taxes for corporations and the wealthy. Hoping to refocus priorities in 2012, the state’s Senate Democrats have released a new plan that puts Michigan students ahead of wealthy corporations.

Under the Michigan 2020 Plan, Michigan’s high school graduates will be eligible for free tuition at one of Michigan’s community colleges or universities, where the median tuition level is currently around $9,575 per year. The program will be funded entirely by eliminating $3.5 billion in tax credits and loopholes and putting that money towards students:

“Study after study after study has emphasized the importance of a highly educated workforce in the economic vitality of any state in the 21st century,” said Senate Democratic leader Gretchen Whitmer, D-East Lansing.

Michigan currently pays out roughly $34 billion in tax credits. Under the Michigan 2020 Plan recently unveiled, $3.5 billion in tax credits and loopholes would be eliminated. Democrats put the tuition proposal’s cost at least at $1.8 billion. [...]

Under the plan, graduates who spent their entire K-12 years in Michigan schools would be eligible for the full award, which equates to the median tuition level of all public universities — currently $9,575 per year. Those who attended school for awhile outside the state would get a percentage of that amount.

College tuition has tripled in the last 30 years and is only trending upwards. Indeed, college price tags could get as high as $422,000 come 2034. And with student loans increasingly hard to find in a restricted credit market, families could certainly use the help in sending their children to a college close by.

What’s more, Michigan Senate Democrats note that the elimination of $3.5 billion in tax loopholes is only a 10 percent reduction in the tax credits the state already doles out. In fact, the program costs almost exactly as much as the $1.7 billion tax cut Snyder implemented for corporations.

The plan should appeal to Republicans as “it can be done without raising taxes one cent,” said Whitmer. “It’s not about whether Michigan can afford to do this, it’s whether we can afford not to.”

Tanya Somanader

Tanya Somanader is a Reporter/Blogger for Think Progress and The Progress Report at American Progress. Prior to joining ThinkProgress, Tanya was a staff member in the Office of Sen. Sherrod Brown (D-Ohio) since 2007 working on issues ranging from foreign policy and defense to civil rights and social policy.


Hide Comments

blog comments powered by Disqus