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Michigan study refutes "Poor People Pay No Taxes" claim

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Michigan News Connection

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According to a new study, voters who've heard that low-income Michiganders don't pay taxes are not hearing the whole story. 

The report by the Michigan League for Human Services, finds that low-income Michiganders are paying their share of taxes. 

Gilda Z. Jacobs, President of the Michigan League for Human Services, said everyone who buys things in Michigan contributes through the sales tax...

"A third of the taxes that are collected in Michigan come from sales and excise tax. So any time somebody goes and buys a pair of shoes for their kids, buys a pair of jeans, they are all contributing to the sales tax in our state."

The Michigan League for Human Services estimates that when Michigan's newest round of tax changes are fully implemented in fiscal year 2013, business income tax revenues will be cut by 83 percent.

At the same time, individual taxes will go up by 23 percent, with lowest-income Michiganders getting hit the hardest.

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