Mich. gov to unveil cuts, possible tax hike

AP on Yahoo ^ | 2/10/10 | Kathy Barks Hoffman - ap

[NormsRevenge]

ANSING, Mich. – Michigan Gov. Jennifer Granholm will roll out her final budget plan Thursday amid a chorus of calls for more spending from some groups and lower taxes from others.

The Democratic governor hasn't said if she'll propose raising or shifting taxes as a way to deal with a deficit of at least $1.6 billion in the budget year that starts Oct. 1.

But it seems likely. Granholm has proposed saving about $450 million annually by trimming teacher and state worker benefits, cutting prison costs and requiring that some school services be privatized. But that still leaves a gaping hole.

...

Republican lawmakers have warned they're unlikely to support any tax increases, making deep cuts likely if they get their way. They say higher taxes will damage the state's already weak economy.

[bmwcyle]

She is killing the state and they leave her in office.

[GeronL]

A 100% income tax and a 100% sales tax and a 100% property tax is a can’t miss prosperity machines.

[samadams2000]

Fire one of 3 government employees. Then start the real cutting.

[Drill Thrawl]

Just what a stagnant economy needs, less money. FRICKING’ GENIUS! Why didn’t I think of that?

[PGalt]

The worst governor and worst attorney general in Michigan’s history. Breathy Grantheft...Michigan’s worst.

[truthguy]

Yes this woman is as dumb as a box of rocks. It's amazing what a Harvard education will do for you.

Look, here's what the fool doesn't understand; the tax-rate tax-revenue curve. It's something like a bell-curve. On the x-axis you have tax-rate and on the y-axis you have tax revenue. If you had a tax rate of zero you would get no revenue. If you had a tax rate of 100% you would end all economic activity and thus get no revenue. So somewhere in between these levels, there's an optimum tax rate where the slope of the curve goes to zero. Tax beyond that rate you get less revenue. Cut taxes to a certain degree and you will increase economic activity and thus get more revenue.

It's always amazed me that so many educated people cannot understand this simple concept. Many of them are politicians at the highest level like the governor of Michigan and the president of the United States.

[ReformedBeckite]

I think a few Billboards with her picture and “Are you sick and tried of me yet” would be approiate in Michigan.

[Darren McCarty]

I'm proud to have voted against this idiot every possible time. 1998 general election for attorney general. 2002 primary election for governor. 2002 and 2006 general elections.

Harvard sucks.

[kempster]

Just till November and then she is history. Her final speech as Governor will be to blame her entire eight years on Engler and Bush.

[GeronL]

I kind of favor the 0% rate myself. At least we’d have jobs.

[Tzimisce]

Wow - more and more tax hikes. I’m stunned anyone can afford to live in Mi....

[OrangeHoof]

Judging from this report, the first thing cut was the letter “L”...

[Mrs. P]

Yah, well, one thing she’s right about - I’m blown away.