Monday, October 1, 2007

Freedom Rang Across Michigan for 258 Minutes

Our state government shut down this morning at 12:01 am and remained shut down until 4:18am, when two Senate Republicans broke ranks and voted in favor of $1.5 billion in tax increases. Freedom rang across the land for 258 minutes, but alas, the politicians relented and voted to destroy more jobs by raising our state income tax to 4.35% from 3.9%, as well as adding a 6% sales tax to services.

Michigan, the land of the one-state depression, will get even worse. $1.5 billion extracted from the populace and added to the general fund budget is an increase in spending of 18% in one year. That's right, Governor Granholm has increased spending 18% in one year.

We'll have more detail on the vote and the associated reforms later today. We are also attempting to confirm that those who voted in favor of the tax hikes will be recalled.

1 comment:

  1. I'm a little fuzzy on your math.

    Given how much has been cut from the budget since Granholm took office, and how much tax revenues have declined, call me crazy but isn't it completely ridiculous to say that spending has increased at all; let alone by 18%?

    Michigan's revenues have declined since 2000 from $9.8 bil. (2000) to $8.3 bil. (2006). That's, what, 15%? If you adjust for inflation, the revenue to Michigan's general fund is down as much as 40% from 1999.

    If you go further back to the 1990s, business tax rates were already down 15% from then, and personal income tax rates were down 20% - so if anything - the state is rolling back those tax cuts and returning taxation to 1990s levels.

    By the way - two other states (Wisconsin and Rhode Island) were in the red last year just like Michigan. Moreover, many other states were hit by the recent recession - the only difference is that they had more diverse economies so they got through the recession faster.

    Recalling a politician for not voting the way you want them to on one issue is utterly asinine; and given that these recall efforts involve paying a bunch of hacks per signature to stand in front of malls and grocery stores - it's antidemocratic as well.

    I'm curious - do you have an Orwellian name picked out for your recall effort yet? May I suggest the "Stop Kicking Michigan Puppies and Kittens Coalition"? - I don't think anyone is using that one yet.