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EXCLUSIVE POLL: Dealing With The Deficit


Last Update: 7/11/2009 8:47 am
(WXYZ) – An exclusive new WXYZ-TV, Detroit News EPIC-MRA Poll shows that most people think things are on the wrong track both in the country and here in Michigan.

The results also show that more people think things are headed the wrong way now than did two months ago. Now 52% of people say the United States is headed down the wrong track. That’s compared with the 46% who said so in May.

When asked about Michigan, 75% of people say things are going the wrong way, compared with 71% in May.

The current poll was conducted between June 23 and June 28. It has a sample size of 600 active voters, and an error rate of plus or minus 4%.

When asked about what problems our state is currently facing, the vast majority of people, 63%, say “Improving Michigan’s economy and providing jobs.” The next highest rated answer was “Making quality health care affordable and accessible” which came in at 7%.

Most people we asked were evenly split between the political parties when asked which one they thought would do a better job handling our state’s problems. 35% say the Democrats, 32% say Republicans and 17% say neither are better equipped. 12% say they are undecided.

However, when it comes to where things will be in a year, the people were asked were mildly optimistic. 41% say they expect things will be better off and 34% say things will be about the same. Only 22% say things will be worse off at this time next year.

Within the next year the state will have to deal with a $1.7 billion dollar budget deficit. The people we asked say in order to balance things the state will have to cut both the budget and raise taxes. 46% of you said that was the way to go. 34% of people say the deficit can still be eliminated by cutting the budget.

When asked what can be eliminated, the most popular choice for where the cuts could come is from the State Legislature, with 27% of people saying that was where they would cut. 11% said they would cut from the budget for state workers, and 6% said they would cut the prison budget.

When asked what that state should do if it is necessary to raise taxes, most people, 46%, say they would have the state sales tax applied to services.

COMPLETE POLL RESULTE ARE BELOW:

Overall, would you say that things in the United States are generally headed in the right direction, or, have things pretty seriously gotten off on the wrong track?

36% Right Direction
52% Wrong Track
12% Undecided

How about in Michigan – are things in Michigan generally headed in the right direction, or are things pretty seriously off on the wrong track?

17% Right Direction
75% Wrong Track
8% Undecided

Now I am going to read a list of the top 10 state problems or issues people say they are most concerned about. After I read the whole list, please tell me which one problem or issue you are personally concerned about the most?

63% Improving Michigan’s economy and providing jobs
7% Making quality health care affordable and accessible
6% Keeping state taxes and fees as low as possible
5% Dealing with the state budget deficit
5% Improving education
3% Controlling crime and drugs
3% Promoting morality and family values
2% Improving state and local roads and bridges
2% Making a college education more affordable
2% Protecting our air and water
1% Name more than one problem
1% Undecided

Which political party, the Democrats or the Republicans, will do a better job of addressing that problem or issue?

35% Democrats
32% Republicans
4% Both equally
17% Neither
12% Undecided

In a year from now, do you think the U.S. economy will be better off than it is now, worse off, or about the same?

41% Better Off
34% About the Same
22% Worse Off

Now, I would like to read a list of several political figures. For each one, please tell me if you recognize the name, and if you do, whether you have a favorable or unfavorable opinion of that person.

Barack Obama
60% Favorable
34% Unfavaorable

Jennifer Granholm
44% Favorable
52% Unfavorable

Debbie Stabenow
48% Favorable
36% Unfavorable

Overall, how would you rate the job being done by Barack Obama as President -- would you give him a positive rating of excellent or pretty good, or a negative rating of just fair or poor?

57% Positive Rating
42% Negative Rating

Overall, how would you rate the job being done by Jennifer Granholm as Michigan’s Governor – would you give her a positive rating of excellent or pretty good, or a negative rating of just fair or poor?

32% Positive Rating
66% Negative Rating

How would you rate the job being done by Debbie Stabenow as U.S. Senator – would you give her a positive rating of excellent or pretty good, or a negative rating of just fair or poor?

40% Positive Rating
46% Negative Rating
14% Undecided

Do you believe that over the past several years state government has made as many cuts in state programs and services as it can, and must now consider raising taxes and/or fees to reduce the impact of those budget cuts, or, do you think the current budget problems can be resolved with budget cuts alone without having a negative impact on programs and services?

31% Most possible budget cuts have been made. Now tax or fee increases must be considered
54% Budget can be balanced without negative impact on important programs by making cuts
15% Undecided

In order to balance the state budget and eliminate a $1.7 billion budget deficit, Governor Granholm and the Legislature will have to either cut the state budget by reducing state programs and services, increase taxes and fees, or do a combination of both. What do you think they should do – only cut the state budget, only increase taxes, or, do a combination of both?

34% Only cut the budget
4% Only raise taxes
46% Do a combination of both
16% Undecided

What one or two cuts in the state budget do you think should be made to balance the budget?
27% State Legislature
11% State workers
6% Prisons
4% Environment
3% Local public school
3% Roads and Bridges
3% Substance Abuse
3% Wasteful government spending
2% Medicaid
2% Universities
2% Welfare
1% Across-the-board
1% Granholm’s pay/benefits
1% Health care
1% Job training
1% Local government funding
1% Mental health
1% Social service
1% State Police
3% Others not listed
23% Undecided

Many survey respondents say that funding for the Legislature or for Legislators should be cut to help balance the state budget, but many people may not know that the entire budget for the Michigan Legislature and their staffs is a total of $115 million, which represents less than 9 percent of the total amount of funding that must be cut to balance the state budget. Even if funding for the Legislature were totally eliminated, another $1.6 billion would have to be cut to balance the state budget if cuts alone are used. Knowing this, what other areas of the Michigan budget do you think can be cut by enough in total funding to eliminate the $1.7 billion budget deficit and balance the state budget.

8% Across-the-board
5% Local public school
5% Prisons
5% Roads & Bridges
5% State Workers
5% Substance abuse programs
3% Environment
3% Universities
2% Nothing
2% Police & Fire
2% Wasteful government spending
2% Welfare
1% Business tax cuts
1% Community colleges
1% Entertainment industry
1% Granholm’s pay/benefits
1% Job training
1% Local government funds
1% Lottery
1% Medicaid
1% Mental health
1% Parks & Recreation
1% Scholarship programs
1% Social Service
1% State Police
1% Unemployment insurance
40% Don’t know

Where should the cuts come from if cutting from the Legislature was not an option.
13% State Workers
7% Prisons
5% Environment
4% Across-the-board
4% Local public school
4% Roads & Bridges
4% Substance abuse programs
3% Universities
2% Granholm’s pay/benefits
2% Medicaid
2% Welfare
1% Health care
1% job training
1% Local Government funding
1% Mental health
1% Nothing
1% Parks & Recreation
1% Police & Fire
1% Scholarship programs
1% Social Services
1% State Police
1% Others not included above
34% Don’t know

What one or two taxes or fees do you think should be increased to provide the revenue to balance the state budget?
16% Alcohol
16% Tobacco
11% Sales tax
10% Income tax
5% Gasoline
3% Vehicle Fees
2% Casinos/Gambling
2% Food
2% Property tax
2% Service tax
2% Toll roads
1% Graduated income tax
1% Luxury
1% Parks fees
1% Residency
2% Others not included above
23% Don’t know

Now I would like to read a description of two tax increase proposals that could be considered by Governor Granholm and the Legislature to balance the state budget and fund needed programs. Each of these proposals is designed to raise roughly $2 billion in additional state revenue. Please tell me whether you favor or oppose each proposal.

A proposal to increase the state income tax by one percentage point. The current state income tax rate is 4.35 percent and the proposal would increase this rate to 5.35%

43% Favor
55% Oppose

A proposal to expand the state sales tax. Currently, a 6 cent tax is charged for each dollar spent on items that are purchased, but there is no tax on the purchase of services. This proposal would expand the coverage of the sales tax to include a tax on many services consumers purchase, but continue to exclude food and drugs.

44% Favor
53% Oppose

If you assume that state taxes will have to be increased in some fashion to eliminate the state budget deficit and balance the books, would you rather have the state income tax increased from 4.35 to 5.35 percent, or, would you prefer having the current 6 percent state sales tax applied to most services excluding food and drugs?

46% Have the sales tax apply to service purchased
35% Increase the state income tax from 4.35 to 5.35
15% Oppose any tax increase
4% Undecided

Under an alternative, the sales tax could be expanded to include the purchase of services, but the state sales tax rate would be reduced from 6 to 5 cents. If the state sales tax was reduced from 6 to 5 cents as part of a proposal to apply the sales tax to services, but not including food or drugs, would you favor or oppose the proposal?

52% Favor
39% Oppose
9% Undecided


Thinking about another option with the income tax., would you favor or oppose changing Michigan’s current state income tax from a single flat rate percentage tax rate that applies to everyone, to a graduated state income tax which taxes upper income residents at a higher tax rate, with a reduction in the tax rate as incomes decline?

54% Favor
38% Oppose
8% Undecided

Specifically, would you favor or oppose a graduated income tax in Michigan that would set the income tax rate as follows: for lower income taxpayers who make less than $35,000 if filing single returns or $70,000 if filing joint returns, they would continue to pay the current income tax rate of 4.35 percent; individuals with incomes of $35,000 if filing single returns or $70,000 if filing jointly would pay a tax rate of 5.44 percent; and, individuals making $90,000 if filing single returns or $180,000 if filing joint returns, would pay 6.53 percent. Thinking about the tax rates I just described, would you favor or oppose a graduated state income tax that included those specific tax rates?

52% Favor
40% Oppose
8% Undecided

There may be other proposals affecting the state budget that involve reducing or eliminating taxes on businesses in the state. Each of them would shift the responsibility for payment of state programs and services from Michigan businesses to individuals.. One of those proposals would . . . .

Eliminate the Michigan business tax surcharge and reduce the base gross receipts rate from 0.8% to 0.5%, which would cost the state approximately $950 million in revenue. The plan would make up some of this loss by eliminating the film industry tax credit and reducing the sales tax rate from 6% to 5%, but extend the sales tax coverage to include most services. The extension of the sales tax to services would not include transactions between businesses. In total, it is estimated that this plan would produce $200 million less in revenue than the current system. Knowing this, would you favor or oppose the plan to reduce the Michigan Business Tax rate and make up some of the lost revenue by extending a 5% sales tax rate to services?

30% Favor
57% Oppose
13% Undecided

Eliminate the taxes paid by businesses on personal property. Approximately $100 million is paid in the form of a state education tax, but the vast majority of the personal property tax – over $1 billion – goes to the local unit of government where the business is located. In total, over One Billion One Hundred Fifty Million dollars would be lost to the state and local governments. Some of this loss would be made up by eliminating the film industry tax credit and reducing the sales tax rate from 6% to 5%, but extending the sales tax coverage to include most services. The extension of the sales tax to services would not include transactions between businesses. In total, it is estimated that this plan would produce about $500 million less in revenue than the current system. Knowing this, would you favor or oppose the plan to eliminate personal property taxes paid by businesses and make up some of the lost revenue by extending a 5% sales tax rate to services?

19% Favor
68% Oppose
13% Undecided

Completely eliminate the Michigan Business Tax, costing the state about $2.1 billion in revenue. Some of this loss would be made up by eliminating the film industry tax credit and reducing the sales tax rate from 6% to 5%, but extending the sales tax coverage to include most services. The extension of the sales tax to services would not include transactions between businesses. In addition, the proposal would establish a graduated income. Lower income taxpayers would continue to pay the current income tax rate of 4.35 percent. Individuals with incomes of $35,000 or $70,000 if filing joint returns would pay 5.44 percent, and the top tax rate of 6.53 percent would apply to taxpayers making $90,000 if filing single returns or $180,000 if filing joint returns. In total, it is estimated that this plan would produce about $362 million less in revenue than the current system. Would you favor or oppose of the plan to eliminate the Michigan Business Tax and make up some of the lost revenue by extending a 5% sales tax rate to services and establishing a graduated income tax?

20% Favor
66% Oppose
14% Undecided
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