Friday, April 6, 2007

Tax Ourselves into Prosperity?

State government is having a tough time these days. The Governor and Legislature are arguing over how to close a supposed $940 million deficit for this fiscal year (which ends in September). But wait. As GR Pundit readers already understand, the way government budgets its money is different from how normal people and companies budget. Let's take a closer look at the numbers.

Is this "deficit" due to a reduction in revenue? According to the Michigan House Fiscal Agency, fiscal year 2005-6's General Fund revenue was $8.266 billion. Fiscal year 2006-07's General Fund revenue is expected to be $8.230 billion. That's a slight increase in reveues. So what's the problem? Well, spending, of course. According to the same agency, appropriations (spending) for 2006-07 are set at $9.2 billion. Houston, we have a problem.

So, as usual, Governor Granholm and the Democrats in the state House are proposing all sorts of tax increases, including a 2% sales tax on services, an increase in the death tax, higher taxes on cigarettes, higher taxes on insurance, and higher liquor taxes.

The problem here is that residents of Michigan already enjoy the 16th highest tax burden in the United States. The average tax burden is 10.6%, when combining all state and local taxes.

Any company or individual would cut back on spending to balance the budget. But, since government has a monopoly on the police and will put you in jail if you don't pay taxes, it's a heck of a lot easier, for politicians and bureaucrats, so simply force us to pay more tribute.

This is one of those times where having a split government is better for all of us. The Republicans and Democrats in the state have to fight it out to get an agreement. No rubber-stamping, as our Federal government was for the past six years.


  1. Please join Americans for Prosperity, The Michigan Taxpayers Alliance, The Wayne County Taxpayers Association, The Kalamazoo Taxpayers Association and others for the Michigan Taxpayer Tea Party on the steps of our state Capitol on Wednesday, April 18, at 11:00 a.m. We need you to come and join the voices of the hard-working men and women of our state in saying 'enough is enough!'
    At every step we've heard from small-business people, including contractors, realtors, restaurant owners, and others, who say Governor Granholm's tax plan would do their businesses in. Our state government spending continues to increase every single year, while our own incomes are going down and jobs are bleeding out of our state on a daily basis.

    April 18 is taxpayers' day to come to the Michigan Capitol and let Governor Granholm and our state lawmakers know we will not stand for job-killing tax increases. Our goal is to fill the Capitol lawn with men and women like us -- men and women who are working hard to support our families while Michigan weathers this economic storm.

    Bring a tea bag to give to Governor Granholm. Bring your children to watch democracy in action. Bring as many friends as you can to ensure taxpayers' voices will be heard in Lansing on April 18!

    Thank you!

  2. "men and women who are working hard to support our families"

    What do you do to "work hard"? Work for an astroturf outfit?