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 ...
Thanks for the ping!
Thanks for the ping, grellis. Breathy Grantheft. Where did this jackass /rhetorical come from?
Smoking kills you and is expensive.
You’re odds of winning the lottery are what, the same as the Titanic finally docking in NY?
Eating out costs too much. Cook at home, eat leftovers.
Why buy new clothes? Use what you have or shop at thrift stores.
So, the system is so f*c**d up that when people cut back, even in the small ways, the pols scream.
Wow! Can you go to another state that’s cheaper or order online?
What I find truly amusing is that you're Canadian...like our train wreck of a Governor. In using your methodology, I can safely assume that all Canadians, such as yourself, are abortion loving economic Marxist morons, with excessive moles.
You know, painting with insultingly broad brush strokes is kind of fun isn't it?
I’ll be ordering and cutting back.
“but it is far worse than that...clinical progression is idiot, imbecile, moron...”
Actually, she is evil. Her tax breaks for the movie industry policy has led to a little boom in movie making in Michigan. This proves that she knows exactly what policies lead to a booming industry and she chose to implement that policy for an industry that she favors. Picking and chosing the industries she wants to allow to thrive, is just pure evil.
The prices have already increased for the end consumer. The manufacturers had to start collecting the taxes early so that they could pay them starting april 1.
Just an fyi.
Actually, I live in Oakland County in Michigan.
I take your point, though. I was just peaved off when I wrote that. Most of MI is a great place with good people. It's unfortunate that a large number of persons in places like Flint, Detroit, Highland Park, Pontiac, etc that make it look worse than it really is.
I'd still move out in a second, if I could, but mostly because of the weather.
My including you in the response was just a courtesy ping.
I spent more than the first half of my life in Oakland County, and still play around in the Paint Creek every chance I get.
Go Wings!
Add Oregon. I have lived in MI, IL and CA. Been here for a couple years and there are some of the most ignorant people I have ever met.
And some of us have actually quit. I quit 5 years ago when she started taxing it to high heaven.
I didn’t - I moved out of the state (in 2000).
I thought the simulus was to create jobs, not to balance a states overspending and irresponsible management of affairs.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.