By John Bebow - November 1, 2007
Oakland County attorney Henry Woloson has an idea… let's extend the 6 percent sales tax on services to political advertising.
He calls it the "Campaign Ad Tax."
"Think of how much revenue could be generated by a six percent tax on all print and media ads for national, state-wide and local elections and campaigns. far more than a sales tax on the bronzing of baby shoes," Woloson argued in a recent email exchange with the Center for Michigan. "Who would be hurt? For the first time in history, taxpaying voters would WANT to see more campaign ads!"
Well, Henry, the Campaign Ad Tax wouldn't completely solve Michigan's never-ending state budget troubles, but it would be fun. Here's a quick look at the numbers…
Politicians and political causes in Michigan raised and spent $192 million in 2006, according to the Michigan Campaign Finance Network. Taxing those receipts at 6 percent would bring in about $12 million. Gubernatorial TV ads totaled $56 million in 2006. Taxing those at six percent raises a little more than three million — not much in a $9 billion state budget.
Do you think maybe we could double the tax for negative campaign ads?
We engaged Woloson and Rich Robinson, the head of the Michigan Campaign Finance Network, in a brief email discussion on the issue. Here's what they had to say:
ROBINSON: "I love it. The only problem is that the politicians will feel that they have to raise even more money."
WOLOSON'S RESPONSE: "Politicians wanting to raise more money is a problem? Or our fault?
As my dentist once said, 'Pigs are always hungry.' I HOPE they raise more money so they can CAMPAIGN EVEN MORE. WE NEED THE REVENUE! And a lot will come from outside Michigan. In fact, I will personally host a fundraiser if used for advertising. We will serve tea and call it The Motown Tea Party."
Final thought… economists have argued Michigan should update its tax structure to better capture growth in the 21st Century economy. The Campaign Ad Tax would do so, since overall campaign spending in Michigan rose 60 percent from 2002 to 2006, according to Robinson's group.



4 Comments
Great idea!! Would you like to run for govenor? And just how long did it take you to come up with that idea, 6 months? I'll bet not, we need you.
I like the idea as well, but sarcasm is immature and we should be able to be adult about this kind of thing. This is serious stuff, not your typical sweep it under the rug and leave it for years to come. By the way, I was ranting about Ryder's immature commentation.
PLEASE SAVE US.I AM WILLING TO HELP YOU.WE NEED REFORM.I LOVE THE METRO TEA IDEA.IT WILL WORK.HOW ABOUT SOME TEE SHIRTS.BUMPER STICKERS.THIS IS A GREAT STATE .AND ALOT OF SMART PEOPLE LIVE HERE.WE NEED TO TAKE OUR STATE BACK.LET'S ROLL.
I aplaude the efforts sir: I only have this to say! If I don't do my job? I don't get paid. What gives our Govenor the right to betray the citizens of Michigan? I say lighten the top and and pull back the overspending. Tax their fundraising income just like the small business tax she implies to the small business. We're drowning here. We now make our teachers accountable for education? Let's make our Govenor accountable! No Exceptions!
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