Michigan makes me sad

Pearls · 10-21-2009, 05:44 AM

I used to live there. Reading this article just makes me sad and mad. What a dumb governor - her extravagant taxing has chased business out of the state. For every family moving in, two have left. Hopefully Granholm will be voted out, and they can get back to a healthier outlook. The government is the biggest employer - how's that work? It doesn't! Throw that in with the decline of the auto industry, and it's a big ol' mess.

Michigan's Economy Withers Under Tax Burdens - WSJ.com

OCTOBER 20, 2009
The State of Joblessness
The tragedy of Jennifer Granholm's Michigan

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. Now she wants $600 million more. Among the ideas under consideration: an income tax increase with a higher top rate, a sales tax on services, a freeze on the personal income tax exemption (which would be a stealth inflation tax on all Michigan families), a 3% surtax on doctors, and fees on bottled water and cigarettes. To their credit, Republicans who control the Michigan Senate are holding out for a repeal of the 22% business tax surcharge.

As for Ms. Granholm, she and House speaker Andy Dillon continue to bow to public-sector unions. There are now 637,000 public employees in Michigan compared to fewer than 500,000 workers left in manufacturing. Government is the largest employer in the state, but the number of taxpayers to support these government workers is shrinking. The budget deadline is November 1, and Ms. Granholm is holding out for tax increases rather than paring back state government.

The decline in auto sales has hurt Michigan more than other states, but the state's economy would have been better equipped to cope without Ms. Granholm's policy mix of higher taxes in order to spend more money on favored political and corporate interests. If any larger good can come of the experience, it is that Michigan is teaching other states how not to govern.

robine · 10-21-2009, 05:50 AM

democrats love to tax and spend... Hopefully, VA will be giving the boot to that party and installing some one who can think outside the party box.

I know Michigan is really hurting..that is so sad.

Julester · 10-21-2009, 06:45 AM

Yes it is sad to see a state run into the ground by ineptness.

I saw her on FNS a couple of weeks ago along with the Gov of Indiana (who in my opinion cleaned her clock). Knowing that her state is quite frankly a "hell hole" she toed that party line by stating that the Stimulus has been working for her state!! Yeah tell that to all the jobless!

Seems that she is just mismanaging any cash coming her way and there is no reform or promise in the future. She looked pitiful. The Gov of Indiana on the other hand admitted that the stimulus has virtually done nothing and they went out started this big transportation project on their own. Which has been helping them.

But Michigan? If I was a voter there I would be seriously looking at someone with a brain and a keen sense of business. they need it BAD! At this rate, the people of Michigan will be owned by the Feds and Obama.

andys · 10-21-2009, 07:23 AM

The Michigan economy / Granholm is a microcosm of what is wrong with the democrat agenda that is being rolled out by Obama et al. Big govt, high taxes, support of unions / entitlement ment programs at the expense of business. Its a disaster. Our grand children will look back and wonder how we all could have been so blind / stupid as to have allowed this all to happen. Just for the record this started under Bush (a democrat light) and continues in steroids under Obama.

LBWP · 10-21-2009, 07:30 AM

I heard last night that our govn't has employed 30,000 jobs since the stimulus & private employers have found they can hold profits (good for stockholders/investors obviously) by cutting employement w/no expansions = no new jobs. How long do you think the govn't will hold out before they declare the stimulus a complete failure & start to support private small business once again?

L (46)
K&E=7.3

**BC-Maura** · 10-21-2009, 07:33 AM

Quote:

Originally Posted by robine

democrats love to tax and spend...

Not so much, actually....

++++++++++++
Maura

robine · 10-21-2009, 07:37 AM

about fell off my chair laughing at the above statement

andys · 10-21-2009, 07:50 AM

Quote:

Originally Posted by LBWP

I heard last night that our govn't has employed 30,000 jobs since the stimulus & private employers have found they can hold profits (good for stockholders/investors obviously) by cutting employement w/no expansions = no new jobs. How long do you think the govn't will hold out before they declare the stimulus a complete failure & start to support private small business once again?

L (46)
K&E=7.3

Exactly, much of the stimulus money going to the states is only delaying the structural changes that need to be made to make the states fiscally sustainable on a go-forward basis. Michigan for example is not addressing its fiscal problems for 2010/11 because it has stimulus money for the current fiscal year, that puts a band aid on the problem. Sure some state employees are able to keep their jobs, but at what cost to society, when these fiscal problems should be addressed as they are in the business world. The michigan economy / population is shrinking substantially but the state govt just gets bigger. And Granholm's answer .... more taxes. Its a cluster foxtrot.

The stimulus bill is a colossal waste of money.

intheknow · 10-21-2009, 07:54 AM

Quote:

Originally Posted by robine

Liberals love to tax and spend... Hopefully, VA will be giving the boot to that party and installing some one who can think outside the party box.

I know Michigan is really hurting..that is so sad.

there, fixed it for ya. There are a few Democrats, I think, that are beginning to understand that tax and spend will not work. Our current crop of Republicans certainly have a penchant for spending too.

robine · 10-21-2009, 07:56 AM

Thanks for the fix, but I some how think Maura will still deny it.

it is hard to face reality sometimes when reality bites.

10-21-2009, 05:44 AM	#1 (permalink)
Pearls 1000-4999 post queen of hearts Join Date: Feb 2007 Posts: 1,463	Michigan makes me sad I used to live there. Reading this article just makes me sad and mad. What a dumb governor - her extravagant taxing has chased business out of the state. For every family moving in, two have left. Hopefully Granholm will be voted out, and they can get back to a healthier outlook. The government is the biggest employer - how's that work? It doesn't! Throw that in with the decline of the auto industry, and it's a big ol' mess. Michigan's Economy Withers Under Tax Burdens - WSJ.com OCTOBER 20, 2009 The State of Joblessness The tragedy of Jennifer Granholm's Michigan 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. Now she wants $600 million more. Among the ideas under consideration: an income tax increase with a higher top rate, a sales tax on services, a freeze on the personal income tax exemption (which would be a stealth inflation tax on all Michigan families), a 3% surtax on doctors, and fees on bottled water and cigarettes. To their credit, Republicans who control the Michigan Senate are holding out for a repeal of the 22% business tax surcharge. As for Ms. Granholm, she and House speaker Andy Dillon continue to bow to public-sector unions. There are now 637,000 public employees in Michigan compared to fewer than 500,000 workers left in manufacturing. Government is the largest employer in the state, but the number of taxpayers to support these government workers is shrinking. The budget deadline is November 1, and Ms. Granholm is holding out for tax increases rather than paring back state government. The decline in auto sales has hurt Michigan more than other states, but the state's economy would have been better equipped to cope without Ms. Granholm's policy mix of higher taxes in order to spend more money on favored political and corporate interests. If any larger good can come of the experience, it is that Michigan is teaching other states how not to govern.

10-21-2009, 05:50 AM	#2 (permalink)
robine 10000-15000 post ace of hearts Join Date: Oct 2002 Location: Mountaintop Posts: 18,486 Blog Entries: 1756	democrats love to tax and spend... Hopefully, VA will be giving the boot to that party and installing some one who can think outside the party box. I know Michigan is really hurting..that is so sad. __________________ The modern definition of 'racist' is someone who is winning an argument with a liberal. - Peter Brimelow How many Greats have become the Least for me?

10-21-2009, 07:23 AM	#4 (permalink)
andys 900-999 post jack of hearts Join Date: Aug 2003 Posts: 931	The Michigan economy / Granholm is a microcosm of what is wrong with the democrat agenda that is being rolled out by Obama et al. Big govt, high taxes, support of unions / entitlement ment programs at the expense of business. Its a disaster. Our grand children will look back and wonder how we all could have been so blind / stupid as to have allowed this all to happen. Just for the record this started under Bush (a democrat light) and continues in steroids under Obama. __________________ "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the Public Treasury. From that moment on, the majority always votes for the candidate promising the most benefits from the Public Treasury with the result that a democracy always collapses over loose fiscal policy always followed by dictatorship."

10-21-2009, 07:30 AM	#5 (permalink)
LBWP 10000-15000 post ace of hearts Join Date: Mar 2002 Location: Southeast Posts: 11,927	I heard last night that our govn't has employed 30,000 jobs since the stimulus & private employers have found they can hold profits (good for stockholders/investors obviously) by cutting employement w/no expansions = no new jobs. How long do you think the govn't will hold out before they declare the stimulus a complete failure & start to support private small business once again? L (46) K&E=7.3 __________________ "If you can keep a level head in all this confusion, you just don't understand the situation!"

10-21-2009, 07:37 AM	#7 (permalink)
robine 10000-15000 post ace of hearts Join Date: Oct 2002 Location: Mountaintop Posts: 18,486 Blog Entries: 1756	about fell off my chair laughing at the above statement __________________ The modern definition of 'racist' is someone who is winning an argument with a liberal. - Peter Brimelow How many Greats have become the Least for me?

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10-21-2009, 06:45 AM	#3 (permalink)
Julester 5000-9999 post king of hearts Join Date: Sep 2002 Location: RIGHT in the middle of Virginia Posts: 5,932 Blog Entries: 314	Yes it is sad to see a state run into the ground by ineptness. I saw her on FNS a couple of weeks ago along with the Gov of Indiana (who in my opinion cleaned her clock). Knowing that her state is quite frankly a "hell hole" she toed that party line by stating that the Stimulus has been working for her state!! Yeah tell that to all the jobless! Seems that she is just mismanaging any cash coming her way and there is no reform or promise in the future. She looked pitiful. The Gov of Indiana on the other hand admitted that the stimulus has virtually done nothing and they went out started this big transportation project on their own. Which has been helping them. But Michigan? If I was a voter there I would be seriously looking at someone with a brain and a keen sense of business. they need it BAD! At this rate, the people of Michigan will be owned by the Feds and Obama.

10-21-2009, 07:56 AM	#10 (permalink)
robine 10000-15000 post ace of hearts Join Date: Oct 2002 Location: Mountaintop Posts: 18,486 Blog Entries: 1756	Thanks for the fix, but I some how think Maura will still deny it. it is hard to face reality sometimes when reality bites. __________________ The modern definition of 'racist' is someone who is winning an argument with a liberal. - Peter Brimelow How many Greats have become the Least for me?

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