tag:blogger.com,1999:blog-18370478.post5576431117026653678..comments2023-10-23T09:41:22.599-04:00Comments on STONE SOUP MUSINGS: Budget wishes and realitiesKathyhttp://www.blogger.com/profile/06875378679299157108noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-18370478.post-38173287744866987362007-09-20T13:51:00.000-04:002007-09-20T13:51:00.000-04:00Gerald L. Ford School of Public Policy/University ...Gerald L. Ford School of Public Policy/University of Michigan:<BR/><I>"Whereas the overwhelmingly negative portrayal of Michigan's economy over the last half-decade has resulted in a public sense of gloom and self-doubt, this report presents evidence of numerous positive developments occurring in the state economy... While there are certainly long-term struggles yet to come, there are also signs that Michigan is navigating an historic transformation between economic models, as its former industrial foundation gives way to a growing post-industrial knowledge economy."</I><BR/><BR/>Phil Power: <BR/><I>Michigan's economic weakness was confined to just three industries - manufacturing, construction and government. They play a disproportionate role in this state's "misery index." Together, those three sectors accounted for more than 80 per cent of Michigan's net declines from 2003 to 2006, even though they only made up around 35 per cent of the state's GDP.</I>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18370478.post-62436392883900316562007-09-20T10:57:00.000-04:002007-09-20T10:57:00.000-04:00Jpowers, thanks for the kind words.Ian, your propo...Jpowers, thanks for the kind words.<BR/><BR/>Ian, your proposal is unrelated to the topic at hand. The legislature has to work with the tools they have available at this point in time and the Fair Use Tax is not one of them. Thanks for the comment though.Kathyhttps://www.blogger.com/profile/06875378679299157108noreply@blogger.comtag:blogger.com,1999:blog-18370478.post-85038568965407005982007-09-20T01:23:00.000-04:002007-09-20T01:23:00.000-04:00David Freddo at National Review Online observes:"M...David Freddo at <A HREF="http://snipurl.com/natlreviewonmich" REL="nofollow">National Review Online</A> observes:<BR/><BR/><I>"Michigan has now lost net jobs two years in a row. Its unemployment rate is a staggering 7.2 percent, the highest in the nation (only Mississippi comes close with 6.7 percent). Between June and July, the state lost 20,000 jobs. It has lost 70,000 since July of last year. Michigan also ranks third in home foreclosures, with almost 14,000 new filings in July.</I><BR/><BR/><I>"Between state and local property taxes, sales taxes, income taxes, and business taxes, the state of Michigan siphons off 11.2 percent of its state’s economy — above the national average, according to the Tax Foundation. With few jobs and high taxes, it’s hardly surprising that Michigan’s population declined last year — not just in proportion to the other states, but an actual decrease of 5,000. Meanwhile, the state has been buying nationwide ads daily on CNBC, in which actor Jeff Daniels urges entrepreneurs to move their businesses to Michigan. Another version of the same ad runs on local stations, urging business owners to stay in Michigan.</I><BR/><BR/><I>"In this context, a large tax increase hardly seems practical.</I><BR/><BR/><I>"The Mackinac Center identifies several other sacred cows that can be eliminated from the budget with hardly anyone noticing a difference. “History and Arts” subsidies can be eliminated, public transit funds can be cut, and the state’s “prevailing wage” law can be repealed for combined savings of nearly $300 million. A change to the state university funding formula and a cut in payments to wealthy school districts could save another $96 million. The state could save $614 million more by using private prisons for a small percentage of its inmates and requiring reasonable co-pays for state employee health insurance policies.</I><BR/><BR/><I>"And that’s just the beginning.</I><BR/><BR/><I>"So far, Democrats have only offered to make small cuts in future spending increases, but their first resort for dealing with the budget shortfall is a tax increase. They began their marathon vote with hopes that as many as 12 Republicans would support their plan if “bribed” sufficiently with promised expenditures in their home districts."</I>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18370478.post-91074228333558688962007-09-20T00:46:00.000-04:002007-09-20T00:46:00.000-04:00This isn't difficult. What has happened is that M...This isn't difficult. What has happened is that Michigan - under liberal, central-planning leadership that seeks to pick "winners and losers," - has pressed for bigger and bigger programs, costing more and more tax dollars. <BR/><BR/>Business - the Golden Goose that provides jobs - has been choked, and is wobbling to get out from under the choke hold by crossing the state line. <BR/><BR/>Michigan consumers have been paying business's taxes in HIGHER PRICES, a neatly hidden tax that the politicians figured could go on forever.<BR/><BR/>When Michigan chose Jennifer Granholm, after the first miserable four years, instead of a person who understood about how Golden Geese propagate, what did they expect? And to add insult to injury, they gave the Michigan House away to poltical types that feel oh so comfortable taking from the producers to build a captive constituency.<BR/><BR/>There is a long-term solution for Michigan voters: <B>It's called scrapping the Michigan Income Tax, and enacting the <A HREF="http://michiganfairtax.org" REL="nofollow">Michigan FairTax</A></B>. Under the FairTax, Michiganders, visitors - even illegals - will pay for government the way Michigan working families are paid, when something is <I>sold</I>. <BR/><BR/>Under a FairTax, no more politicians' hands in our family paychecks; no more politicians' hands in our business checkbooks. No more income tax code to harass individuals and businesses, complete with audits, interest, penalties, even confiscation of property and jail.<BR/><BR/>Under a Michigan FairTax consumption tax, Michigan families pay for government in the process of meeting their family's needs. And every Michigan resident family will receive an advance monthly reimbursement on taxes expected to be paid on poverty-level spending based on family size. Thus, it is a progressive tax system, yet voluntary because it will apply only on <I>new</I> retail purchases, not used, and on services.<BR/><BR/><B>The <A HREF="http://michiganfairtax.org" REL="nofollow">Michigan FairTax</A> is a revenue neutral proposal that will put Michigan workers in charge with information on the cost of Michigan government <I>on every retail receipt!</I></B> And, the politicians will no longer be able to pit poor against rich, individual/family against business.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18370478.post-87880855554029026482007-09-19T16:55:00.000-04:002007-09-19T16:55:00.000-04:00Well said, as usual. I often wonder what rock peo...Well said, as usual. I often wonder what rock people must be living under when they seriously do not think that government is important. From the roads we drive to the food we eat, our local, state and/or federal government in likely involved.Anonymousnoreply@blogger.com