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Audacity of Truth
Whiner-in-Chief:
"[W]hether the grumbling is about Republicans on Fox or bloggers in pajamas, there's a word for what the president and his aides are doing. That word is "whining." And nothing [...] does more damage to Obama's credibility or authority than the sense that a popular president is becoming the whiner-in-chief."
- John Nichols, Nation Magazine - 10/12/09
Michigan’s economic troubles to continue
… because apparently they think raising taxes to the tune of $1 billion is something that will rescue the state from its current financial crisis:
LANSING, Mich. – The state Legislature agreed early Monday to raise the income tax and expand the sales tax to services in a deal with the governor that quickly ended a partial state government shutdown.
For a little more than four hours, fewer state police patrolled Michigan highways, campgrounds were closed and road construction projects and lottery sales were stopped.
Applause broke out in Democratic Gov. Jennifer Granholm’s office when the final vote was announced at 4:18 a.m.
“This budget agreement is the right solution for Michigan,” Granholm said in a statement. “We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue. With the state back on solid financial footing, we can turn our focus to the critical task of jump-starting our economy and creating new jobs.”
Granholm signed a 30-day extension of Michigan’s budget, which expired at midnight. The continuation budget keeps government running.
The Legislature agreed to raise Michigan’s income tax rate from 3.9 percent to 4.35 percent and expand the 6 percent sales tax to some services. Granholm signed both measures. Structural changes to state government — including the management of teacher and other public employee benefits — also are part of the package.
The tax increases should erase most of a projected $1.75 billion deficit in Michigan’s next budget. The final budget for the new fiscal year will include $440 million in spending cuts, including no inflationary funding increase for public universities and community colleges, Granholm said.
Captain Ed writes in response:
Adding taxes to Michigan amounts to a domestic Smoot-Hawley approach. Michigan already had the 14th-highest tax burden in the US. State and local taxes took 11.2% of their income before these tax increases. They now appear ready to leapfrog Arkansas, California, Minnesota, and New Jersey to enter the Top Ten of tax-burden states.
Note, too, that the Michigan government solved the problem by a 3:1 ratio of sacrifice. They increased taxes by over $1.4 billion, thanks to increases in both income and sales taxes that go into effect immediately. They only managed to shave $440 million off of their own budget. Given that the state budget planned for $42.6 billion in spending for FY2007, this represents a whopping 1% decrease in state spending. It hardly seems as though Michigan lawmakers even cracked the books of their budget to look for other opportunities for savings.
The increased burden of taxation will not help Michigan recover its economy. It will pressure businesses to move elsewhere at a time when Michigan needs investment and commitment to improve its financial stability. Instead of reversing the decline, the increased burden will escalate it, and next year’s revenue shortfalls will create the exact same problem for Michigan.
It’s a disaster in slow motion. Instead of taking a critical look at the reasons why Michigan’s economy has plunged, the state legislature has punted and stuck its citizens with the bill. That’s hardly a profile in courage.
Nope, it’s not. But it’s what Democrats do. Create a problem to begin with, and then compound it with the “solution.”
Moderate Voice blogger T-Steel, a Michigan resident, is frustrated and disgusted:
Trying to start and maintain a small business in Michigan is difficult at best. If the taxes don’t kill you, the regulations will. And our largest city, Detroit, is just a bastion of cronyism, terrible management, and bad attitude. Michigan lawmakers’ decision to squeeze we Michiganians will just cause many of us, including myself, to leave in revolt and out of necessity.
Not exactly what the Democrats in the state legisalture had in mind, to be sure, but then again, Democrats in that state have proven themselves not especially bright on fiscal matters, so it’s not exactly a surprise to see that they still can’t get it together – and in the process are driving out people they claim to want to “help.”
Via Right Voices.
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11 Responses to “Michigan’s economic troubles to continue”
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Michigan, like New Orleans and Katrina, is a shining example of the result of liberal Democrat policies, government, and the culture of dependence. Between the Michigan government and the unions, the Big 3 car makers are doomed. If they are to survive at all, they have to move out to a right to work, Republican controlled state(s).
Man I would love it if Chrysler would come to Iowa.
Mmmmm Mmmmmm A new Dodge Charger in my garage tomorrow!!! But with the last three idiots that have run Iowa, it is just a shadow of it’s former self. Thru their incapable abilities to run a state these guys have managed to loose thousands of jobs, so many that they lost a congressional representative. It is lunacy that their present Governor even got elected.
As far as Michigan’s woes. I can tell them a quick way to save some money. Stop running “how great Michigan” ads on the Rush Limbaugh show. Most conservatives wouldn’t even think about starting a business in MI.
Also, how can these people continue to take food out of the mouths of the children in middle class familes?? Why do their policies continue to starve our children?? It is amazing how fast they forget where a states funding comes from, until they start to run a tad low, then bada bing a whole new font of monies!! YAY!!! Lowlife pukes. – Lorica
Lorica,
You don’t like Tom “S*itsack”? I know Culver thought he had a right to the seat as he couldn’t get elected as a US Rep. like his daddy.
I don’t want a new Charger. A Dodge Viper untouched by Mercedes-Benz engineers would be fine with me.
Here in NJ, we’d love to see the taxes rolled back to those levels. But I suspect Michigan will catch up to us rather than the other way around.
I didn’t like Vilsack, I don’t like Culver at all, he is an idiot, but the person I despise most of all is the moron who gave Iowa to the Democrats, Terry Braindead. His pop up pardons for his son due to his murderous behavior caused many people to vote against the Republican party. My hope is that Culver only gets 1 term and decent conservative becomes Iowa’s next governor. – Lorica
5, I hope Bill Salier runs against Culver.
I hope so too. Bush irritated the heck out of me when he threw his support to the “moderate” over the conservative, and wondering why Vilesack won. – Lorica
Arkansas was mentioned. It has more public employees per capita short of Washington, D.C. It still taxes food to keep the trough filled.
On Liberal Quicksand (a Michigan blog), Dave Fourputt said, in this comment, that he e-mailed Governess Granholm and his
One of us suspects that Mr Fourputt ought not to hold his breath in awaiting that response.
I had hoped that (as bad as things are) in southeast Michigan (home of Big Three automakers) -that the voters there would opt to send Governor Granholm packing in the course of last November’s election. She’s made it clear that she has no understanding of economics. And is a one trick pony (raise dem taxes! Mo’ taxes gonna solve evah thang!)
The labor unions delivered the vote (once again) to the Dems, and the fate of this state was sealed. Ergo, the misery index will climb and climb….
Hey, get rid of this “gloom and dooom” thing. You don’t have to pay those taxes. Move. I moved to texas several years ago and it was a miracle for my business’ tax flow. And the regulatory burden in Texas is a fraction of that in Michigan.