Freshman Reps Urge Governor to Release Economic Stimulus

$500 million pre-paid economic stimulus will immediately generate activity
Thursday, December 1, 2011

LANSING -Today, several Freshmen Representatives, including State Representative Brandon Dillon (D-Grand Rapids) will introduce a resolution calling on Governor Snyder to immediately drop all pending appeals to the 3 percent salary tax. Releasing this money from a Wall Street bank and putting it into the hands of thousands of families will benefit main streets throughout Michigan.

“The Michigan Court of Appeals has unanimously ruled this law unconstitutional,” said Representative Brandon Dillon (D-Grand Rapids). “I strongly support this resolution because the businesses in Grand Rapids and throughout Michigan can’t wait another six months for this economic stimulus.” 

Legislation enacted in 2010 mandated that anyone working under the Michigan Public School Employee’s Retirement System and all state employees pay a 3 percent gross salary tax into an irrevocable trust. Since the state began withdrawing the funds November 1st, 2010, three separate courts have ruled that the law is unconstitutional and that the money be refunded immediately.

“I join my colleagues in calling on Governor Snyder to immediately return this money to our social workers, corrections officers and teachers to help support local businesses in all 83 counties,” Representative Maureen Stapleton (D-Detroit) said.

“The measures put forth by our State leaders have failed to stimulate job growth. Michigan’s local businesses are struggling and this pre-paid $500 million economic stimulus will generate jobs immediately,” stated Representative Cavanagh. “Michigan’s main street retailers and restaurants cannot afford to wait until next summer for this revenue boost.”

Legislation passed the House of Representatives November 3rd on a party line vote that would bring this money back from a Wall Street bank; however, the money wouldn’t be refunded until prom season of 2012.

“Requiring Michigan’s public servants to continue paying this unconstitutional tax into next spring is a travesty,” stated Representative Stacy Erwin Oakes (D-Saginaw). “I urge Governor Snyder to return this money from Wall Street banks to stimulate the registers for retailers and restaurants all over Michigan now.”