Posted on 03/12/2009 11:32:18 AM PDT by mombyprofession
by Peter Luke | Lansing Bureau Wednesday March 11, 2009, 6:54 PM
LANSING -- Michigan residents bought fewer Michigan lottery tickets, cigarettes, clothes, restaurant meals and household goods, as they saw the stock market plummet and the economic outlook darken.
The sharp pullback in consumer spending sent sales tax receipts downward 18 percent in February, or more than $100 million. It will force Gov. Jennifer Granholm and lawmakers to cut the budget more, agree on tax increases or use more of the federal economic stimulus money to balance the state's books.
It was the steepest monthly decline in 25 years.
Overall revenue declines total $200 million from forecasts made just seven weeks ago.
Since income tax receipts from paycheck withholding were pretty flat in February, economists say concerned consumers may be putting away their credit cards and spending less.
"The big reason revenues are tanking is that consumers are negative and they're saving their money," Senate Fiscal Agency economist David Zin said Wednesday. "We thought consumers would ratchet up the savings and they've done so even more than we thought."
Also down were tax receipts on specific forms of discretionary spending, according to the agency's new revenue report. Tobacco tax receipts were down 6.7 percent and casino wagering taxes were down 7 percent. Michigan Lottery ticket sales dropped nearly 19 percent. One factor that explains some of the decline from a year ago was that February 2008 provided a 29th day of sales.
Tax collections from the sale of real estate are down 42 percent from a year ago. While the focus of the state's economic woe is the auto sector, sales tax receipts from car sales actually climbed 15 percent last month.
(Excerpt) Read more at mlive.com ...
Just wait until the Big Three collapse. They’ll have to dust off that billboard from Seattle and take it to Michigan.
Wait just a minute you two-bit excuse for a Governor! Michigan is a UNION paradise, a LIBERAL paradise, owned and operated by Democrats for the last 45 years. Yet Detroit is a bombed out Dresden look-alike, the car manufacturers are out of business, the school drop out rate is beyond belief, taxes are absurdly high, and YOU’RE RESPONSIBLE you pathetic HAG!
Who says ‘slight’ tax increases do not affect behavior?
Still, I do not think the fools will get the message.
They could start taxing sex. Every male will be mailed a STOKE O METER. .10 cents per stroke.
i used to think this canadian socialist feminazi was just a typical libtard, but it is far worse than that...clinical progression is idiot, imbecile, moron...this piss poor excuse for a thinking human being could not even begin to operate on the moron scale...hell, if breathing was not an involuntary reflex, she would die outright..... and yes, i am now blown away!!!!
America is stuck with a Kenyan. Michigan is stuck with a Canadian
State? I thought it was the islamic province of Canada. Can you say “house of cards”, boy and girls?
Wait until the Federal SCHIP taxes kick in on April 1st and the price for a pack of cigs goes up $.61. Smokers will cut back even more and all states will collect less in tobacco taxes.
Next, I bet they decide to repeal any laws that allow home brewing.
I’ll take ‘How To Tell People Are Fleeing Your State’ for $100 Alex.
My cigarettes in the Socialist Republic of New Jersey are now over $9.00 per pack.
Michigan is their vision of success.... permanent liberal empowerment
OMG!! REDUCE SPENDING!!! Not a chance that will be the first option. Raise taxes on the "wealthy" - that is always a good vote getter
cut the budget more, agree on tax increases or use more of the federal economic stimulus money to balance the state’s books..Once out of 3 ain’t bad..just kidding/sarc.
Atlas is beginning to shrug...
Vice taxes not working. Governor suggest taxing virtue. 10% tax proposed on savings, charity, and Bible sales. < /sarc, for now>
you mean quran sales...
I wish. I’m using my bath tub for cheese making!
” It will force Gov. Jennifer Granholm and lawmakers to cut the budget more, agree on tax increases or use more of the federal economic stimulus money to balance the state’s books. “
Wait a second. I thought that stimulus money could not be used as an operating expense.
Mostly Hondas and Toyotas.
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