Posted on 10/20/2009 2:27:25 PM PDT by rhema
State lawmakers will soon face large budget deficits again, perhaps as much as $100 billion across the U.S. Here's some free budget-balancing advice: Steer clear of the Michigan model. The Wolverine state is once again set to run out of money, and it is once again poised to raise taxes even as jobs and businesses disappear.
In 2007 Governor Jennifer Granholm signed the biggest tax increase in Michigan history, with most of the $1.4 billion coming from business. The personal income tax—which hits nonincorporated small businesses—was raised to 4.2% from 3.95%, and the Michigan business tax levied a surcharge of 22%. The tax money was dedicated to the likes of education, public works, job retraining and corporate subsidies. Ms. Granholm and her union allies called these "investments," and the exercise was widely applauded as a prototype of "progressive" budgeting.
Some prototype. Every state has seen a big jump in joblessness since 2007, but with a 15.2% unemployment rate Michigan's jobs picture is by far the worst. Some 750,000 private-sector payroll jobs have vanished since the start of the decade. For every family that has moved into Michigan since 2007, two have sold their homes and left.
Meanwhile, the new business taxes didn't balance the budget. Instead, thanks to business closures and relocations, tax receipts are running nearly $1 billion below projections and the deficit has climbed back to $2.8 billion. As the Detroit News put it, Michigan businesses are continually asked "to pay more in taxes to erase a budget deficit that, despite their contributions, never goes away." And this is despite the flood of federal stimulus and auto bailout cash over the last year.
Following her 2007 misadventure, Ms. Granholm promised: "I'm not ever going to raise taxes again." That pledge lasted about 18 months.
(Excerpt) Read more at online.wsj.com ...
They ask for it.
The only way our jobless rate will go down is when the jobless move out of the state looking for work...
It is sickening to me because it is all built on redistribution of personal wealth to those who help elect the corrupt politicians.
I wonder how many more have abandoned their foreclosed homes and moved away.
Sorry, but I don’t ask for that. Moreover, the western side of Michigan remains fairly conservative.
And 2 years ago there were radio ads inviting businesses to move to Michigan via tax reduction incentives. Only chumps would take up that offer from the commie Gov.
To paraphrase an old expression.
As General Motors goes so goes Michigan.
Recipe for current and future economic disaster!
Michael Moore got his tax reduction incentive.
The film industry is thriving.
You hit the nail on the head. I am visiting in Michigan right now and almost everyone I talk to say that they will not leave Michigan to look for new work. They are accepting unemployment, hoping for disability after that (Michigan has very liberal disability requirements), and then Social Security retirement. Many are accepting a lower standard of living. They don’t see how this will affect their children. Instead of seeing the need to leave, they are instead surrendering to Government care. I’m in the Upper Peninsula of Michigan and a large percentage are obese. The unemployment here is over 20% but the Wal Mart and McDonalds are packed. The obesity is really a shocker though.
Taxing your state into prosperity never works. Neither does punishing business into success and expansion. The liberal Democrat business model is on display in Michigan. Soon the only people left there will be those that can’t leave or those that won’t leave because of the plentiful benefits and handouts afforded to the permanently lazy class.
This move by the gov of Michigan is designed to bankrupt Michigan. That’s the designed plan. These democrats aren’t a bunch of dum-dumbs - they know these ideas bring economic misery but the more people depend on the state (no matter how miserable) the better.
The left and the democrats deliberately destroyed manufacturing in America. We still manufacture, but much less than before and that’s by design. If people, like in the past, can go straight from high school to a decent manufacturing job, then they ain’t going to buy into the “socialist revolution” but if government can “budge” those jobs to leave or close down shop by making life very ornery for the factory and it’s owner, well then, the left thinks the “disillusioned” former manufacturing employees will stupidly join up for all the leftist causes.
It worked. Michigan is a basketcase. Not an accident. Not the result of “dumb dumbs” but by deliberate design.
Sorry about that. The majority of people in Michigan ask for it.
My family was one of the first to permanently settle northern Michigan back in the 1840s (our original homestead cabin still stands in Emmet county). I am sickened to watch what has happened to our beloved state. As almost a sign from above, my father and grandfather both passed away this year - and the rest of us male children have moved out of state over the years. We have both spiritually and physically abandoned what was once a paradise for my family. I’m sure my ancestors are rolling in their graves at what has happened.
It’s too bad for you, but your state BEGGED for it. They got it coming!
I have relatives in western Mich. I watched one let his 20 somethings daughters car get repoed, which the loan was in his name. Both him and his wife, and his daughter were unemployed. They have money for McDs. They have money for cigarettes. They have money for Dairy Queen. They have money for cell phones. Plus satelite tv, Xbox AND PS2 and at least 3 computers in the house, with high speed internet.
Days after the car got repoed, we were at a family gathering. One family member urgently needed some farm hands for a few hours. When my one relative got a check for helping out, he was going to buy a scuba mask and fins with it.
Oh yeah, they're about to get their house forclosed on.
Obesity there is hugh (Yes, pun is intended). I see the women there 40-50-60 lbs over weight, "complaining" about knee problems and or back problems. They all plan on going to doctors to claim disabilities so they won't have to work.
I hear them talking of these ideas. Its not really that they're so bad physically. They just want to play the system, and of course get out of working.
Of course I'm the lucky one. Or the rich one. Even though I'm just an ordinary construction worker, and might be out of work at times.
I hear my relatives complain when welfare makes them take part time jobs washing dishes.
One relative, who I don't think has ever had a real job, other than babysitting kids, said she'd NEVER work at McDs or Burger King, or even as a greeter at Wally World.
If any of them drive a 1/2 hour to work, you'd think they were deserving of extra pay for it.
10 hour work days, are torture. 6 day work days, slavedriving.
One relative complained that on her day off from her one PART TIME job, her other PART TIME job called her in. She was indignant, and didn't feel it was "FAIR" that she didn't have a day off.
Sometimes it seems like a real life Jeff Foxworthy or Larry The Cable Guy joke.
Thanks for the correction.
Chortle. The majority of dead people voting (twice) ask for it...
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