Ouimet Proposes Funding for American Red Cross via Tax Returns

State Rep. Mark Ouimet (R-Scio Township) is advocating for stronger support of the American Red Cross under legislation unveiled Friday that would create a voluntary check-off on state income tax returns.

House Bill 4497, introduced by Ouimet, creates the American Red Cross Michigan Fund to be used to assist state chapters.

"An income tax check-off creates a built-in funding mechanism that will advance the Red Cross' laudable mission for generations to come," said Ouimet, a former chairman of the Washtenaw County Chapter of the American Red Cross. "The check-off empowers taxpayers to help residents who truly are in immediate need."

The Red Cross provides relief to disaster victims locally and nationwide as well as across the globe. Revenue generated from the check-off would be distributed to Red Cross chapters throughout the state. Michigan currently has 10 voluntary check-offs for various nonprofit groups and issues. Last year, the United Way check-off received $244,373 through 5,877 contributors.

"The money generated by this new check-off would go directly to Michigan Red Cross chapters to support their worthy efforts," Ouimet said. "It's neighbors helping neighbors. With more funding, our Red Cross chapters could do even more to improve our communities."

Ouimet, who was traveling through the 52nd District on Thursday, also took time to talk about Gov. Rick Snyder's proposed budget and its implications for local residents.

Addressing concerns that the governor's budget is  shifting taxes from businesses to retirees and the middle class, Ouimet said he does not feel the budget is unfair.

"We need to do a better job of educating the public about this budget," he said. "I think the way you want to look at this is: What would be viewed as a fair and just approach to contributions into our state? I think, certainly during the governor's campaign, the message was made loud and clear to create a tax environment for businesses that would make it advantageous for small businesses to reinvest in hiring people."

Snyder’s plan would eliminate income tax exemptions on private and public pensions, a change that would affect about 900,000 taxpayers and generate about $900 million in new revenue for the state.

"We have an aging population in the state of Michigan, and I think the governor's approach to this is that he's looking at pensions that have not been contributing to income tax bases. So the question becomes: If you have your largest single growing population not contributing in the income tax, what eventually is that going to cause?" Ouimet said.