Posted on 08/19/2009 5:02:00 AM PDT by taildragger
Michigan State Budget Shortfall May Result In Tax Increases
The state collected $150 million less in May, June and July than fiscal analysts projected as part of the May Consensus Revenue Estimating Conference (CREC), according to numbers released last week Tuesday by the House Fiscal Agency (HFA). That means a bigger problem next year, but not necessarily more budget cuts for this fiscal year. The state still shouldn't have a problem balancing its books in Fiscal Year (FY) 2009, thanks to a cushion created by leftover federal stimulus money. But fiscal 2010 is a different story.
(Excerpt) Read more at michiganstateandlocaltax.com ...
New Tax Revenue
Entertainment tickets, cigarettes and a small slice to the recently enacted movie production credits highlight the Governor’s latest budget-balancing list to legislative leaders, which includes a total of $685 million in new revenue, according to information obtained by MIRS. In exchange, the Governor would like to phase out the 21.99 percent surcharge on the Michigan Business Tax (MBT) over a three-year period starting in 2011.
Expanding the state's six-cent sales tax to entertainment events, a concept tied into the short-lived sales tax expansion to services in 2007, is the largest high-dollar revenue generator on the Governor's list. The "ticket tax" is estimated to bring in $87.3 million. The six-cent sales tax would also be applied to service contracts (on new appliances, etc.) and vending machines, bringing in $29 million and $28 million, respectively. Raising the state's cigarette tax from $2 to $2.25 is back on the list, but an earlier proposal floated to raise the beer tax is off, according to information obtained by MIRS.
Since the cigarette tax was raised from $1.25 to $2 in 2004, many smokers have gone to "rolling their own" cigarettes with loose tobacco. The Governor's proposal takes care of that, too, by doubling the tax on "Other Tobacco Products,&quo t; something estimated to bring in $45 million. The new plan puts a one penny tax on all water bottles sold in Michigan, bringing an estimated $17 million back into state coffers.
The state's new 42 percent film production credit, in which companies are reimbursed by the state for shooting movies, TV shows and other productions in Michigan, is cut 12 percent under the Governor's offering, which would save $7.8 million. The Senate's plan capped the credits at $50 million, saving the state around $98 million.
MIRS also has learned the Governor is proposing a cut in the Earned Income Tax Credit (EITC) from 20 percent to 15, which would save the state $83 million. Also being cut under the revised plan are two special carve-out credits currently enjoyed by the Michigan International Speedway (MIS) to the tune of $3.6 million.
As usual, the Governor is carting out some of h er familiar list of "loophole closings" she's presented to the Legislature nearly every budget cycle, such as the elimination of the exemption on international and 1-800 telephone calls.
The legislature and the Governor will have to work it all out. However, one thing is sure; taxes will be going up.
Times are tough all around, but government is the one entity that can enforce, at gun point, their claim to someone else’s property.
Buit notice, I am not holding my breath.....
Does anyone else here remember the media’s verbal and written masturbation when she was first elected, about how she was one of the upcoming stars of the new Democrat party?
They bewailed the fact that she was born in Canada or, according to them, she would be a shoo-in for president. Of course not being born in America doesn’t seem to have slowed down the Black Prince, but in this case she has turned into one of the 3 worst governors ever elected and maybe even the worst, with the possible exception of Pontius Pilate.
Yeah, more taxes, that the ticket. /s
Financial failure is the end point of every socialist society.
There is not enough money in the world to make socialism work. It can only work at the point of a gun and even that has its limits.
Michigan State Budget Shortfall May Result In Tax Increases
Nation Goes Into Shock!
News at 11.
Seriously destructive fiscal policy at its least.
They still think that if they raise taxes, they will collect more money...
They haven’t learned a darn thing...
And she will be easily re-elected by the very libtards who complain every day about the continued demise of their state. Ther are, and will always be, utterly and completely clueless; incapable of voting for anyone who does not have “D” by its name.
Democrats and unions,there’s nothing they can’t bankrupt. Just blame it on Bush’s “failed policies” and raise those taxes. Problem solved!
She is term limited and has only 2 more years left to ruin Michigan’s economy. We have several good republicans ramping up to run. I am leaning towards Mike Cox, current attorney general.
I remember 2004 and tobacco tax went up. Many were proudly claiming how many uninsured people would now have health care. I told them there would be a reduction in revenue. Didn’t believe me. Something like 70 million dollar lost in the first year. People were driving to Indiana to by cigarettes. Democrats are predictably stupid when it comes to taxes. A real possibility is that 300 more state police will be laid off. Right now there are 26 furlough days in the budget, one for each pay period. Furlough days are unpaid days off for employees.
Pontius Pilate was responsible for the death of Jesus. Granholm is responsible for the death of Michigan. Game, set, match to Granholm, IMHO.
Of course, we have to also take into account Gray Davis from California, Rod Blagojevich from Illinois, and Jim Florio and Jon Corzine from NJ, so ranking anyone as the worst governor ever is going to be impossible when you consider the choices.
Two words, term limited
Love your tag line. LOL.
They’ll probably roll out the boogey man of a government shutdown too.
Shut the damn thing down. Permanently, for all I care. If only the evil federal government would shut itself down forever.
Breathing - That’s the ticket! We’ll tax BREATHING! This will finally solve ALL of our financial woes. Everybody breathes! Everybody pays!
Isn’t we brilliant? Vote for me again next election!
I am not a fan of these things personally, but the stores such as Best Buy or Sears or whatever make a lot of money on these things. More tax on it means fewer people will buy it. That means you could see some stores close or lay off employees if they are in hard times. That would mean more unemployment.
Meanwhile, Jenny has made a website for people to go to start a new business. It sucks a lot.
She shares in the sacrifices of the common man. The full time staff at the Governor's summer mansion on Mackinac Island is down to only one gardener and one housekeeper.
Taxes. Great.
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