Voters in Michigan made their voices clear on Tuesday. A statewide referendum was held on whether to raise state sales and gas taxes to pay for road repairs that had been neglected in favor of other government spending.
It wasn’t close — in fact, the proposed constitutional amendment didn’t even crack 20 percent support.
But Michigan voters, who will be heavily courted in the 2016 election, did not just reject another tax increase. They also rejected an attempt by one small but well-moneyed set of businesses to plunder everyone else. In doing so, they showed how a message against crony capitalism can resonate with a Blue- or Purple-state electorate. The Republican candidates for president would be wise to take this lesson into account as they plan for next year.
Supporters of the tax hike raised more than $9 million and flooded the state with cash. As of the last pre-election report on May 1, they had outspent opponents by an astounding ratio of 42-to-1. Business interests – especially the Michigan Infrastructure and Transportation Association – threw in millions in their bid to fatten the calf they hoped to consume through government road contracts.
The state Chamber of Commerce, which represents businesses that would have been subjected to the second-highest state sales tax in America had the measure passed, remained neutral. But some local chambers endorsed the measure.
Supporters of the $2.1 billion tax increase spent at least $20.58 for each vote they received. Opponents spent somewhere in the neighborhood of 12 cents per vote.
And once again, money was not able to buy an election where public will was lacking. The pro-business, pro-tax-hike side was soundly defeated — not just beaten, but humiliated and repudiated as well. According to the Detroit Free Press, the 81 to 19 percent victory by the “no” side represents the most lopsided margin in the history of constitutional referenda in the Great Lakes State since its current constitution was adopted in 1963.
This referendum was a reminder that big business and big government are allies as often as they are adversaries. Many businesses depend on government for their livelihood. In this situation, the dependency was especially direct. Many business groups answered the call when Gov. Rick Snyder, a Republican, enlisted their aid on this proposal.
Although the ballot measure was expected to lose by election day, no one expected an 81 percent vote against it. It goes to show that conservative ideas about limited government and free markets — as opposed to pro-business government policy — has an enormous untapped audience, even in a state that hasn’t voted for a Republican presidential candidate since 1988.
No, not every “no” voter from Tuesday will support a Republican or conservative candidate next year. But some significant number appreciate the nexus of government and business sufficiently that the right message could make them consider it.
Carly Fiorina, although she is a longshot for the GOP nomination, has the right idea: The eventual Republican nominee will face off against an ethically-problematic Democrat whose financial ties to large international businesses must be exploited. A nominee who can credibly stand for and intelligently advocate a fair playing field among businesses, free of special government favors, will have a natural advantage in 2016.
