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This was from back in March before the new tobacco taxes were imposed and the crap really hit the fan.

Michigan Lottery sales, taxes on cigarettes and casino gambling plummet; Gov. Jennifer Granholm says revenue decline is 'breathtaking'

"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.

“The big reason revenues are tanking is that consumers are negative and they’re saving their money,”

hmmm....What kind of economy is based on “sin tax” revenue in the first place? (!!)

I’ve heard people defending GH, saying it’s not her fault. George Bush’s fault, I guess. I hope MI voters are finally getting a clue.

The “sin tax” declines are due partially to a bad economy for the blue collar workers who pay most of them, and partially to tax avoidance (by buying out of state or over the internet).

The Laffer curve works for sale taxes as well—and in this economic environment most states are on the wrong side of it.

That state officials are “stunned” by such developments indicates either incredible stupidity or they are lying through their teeth—but probably both. :-(