Monday, October 1, 2007

Michigan taxpayers take a hit

In the late hours of September 30, 2007, the Michigan Legislature finally gave Governor Granholm nearly everything she wanted. Taxes were raised by $1.3 billion per year in the form of increased income taxes and a new sales taxes on a number of never before taxed services.

Who won and who lost last night? Unquestionably the losers were the taxpayers, working families and business owners of this great state. The $1.3 billion in new revenue to the state treasury is money that otherwise would be invested in goods and services, jobs and expanded businesses. Job providers will have just that much more of a hurdle to clear. As taxpayers realize they have a smaller check each week, and more taxes to pay for services they never had to pay before, they will realize they have less discretionary income. That means fewer cups of coffee down at Beaner's. Maybe they won't go to the movies, or maybe they will go but not buy popcorn and Good-n-Plenty. Perhaps decisions will be made not to purchase a new CD player for the car, or a new basketball backboard and hoop for the driveway. All these things will mean less trade, less commerce, less wealth creation.

But who are the winners? The Legislature? No, "we" cannot be proud of our performance. We had 8 months to balance the budget and couldn't do it. We spent much more than we have in the bank. We wasted most of the summer accomplishing little and then rushed through a pile of legislation without even putting them through the committee process.

Some might say the Governor was a winner. She essentially got her way, that is true. But does that make her a winner? I suspect that by next Spring as taxpayers realize fully the burden they must endure, they will not see her as a winner. In fact, there may be a backlash of anger unanticipated by anyone in her administration.

I believe there was only one winner last night: Big Government. Bureaucracy. They were the winners. Government is back on the growth track after a couple of years of staying within its means. The budget this year will likely end up growing at twice the rate of inflation.

Big Government is the new protected class, the elite. The average government worker makes substantially more than the average private sector employee. Ronald Reagan was right: Bureaucracy is the closest thing to eternal life you will ever find on this earth.

So, if you want to raise a glass and toast the "winner" look to Lansing.


wolflady48884 said...

Your assessment is right on. People are already irate. The newspaper forums are full of the anger and frustration. I firmly believe you are going to see petitions to remove those they perceive as turncoats and tax and spenders. The people of this state spoke and the arrogant elite legislators on the left side of the aisle and our socialist Governor decided the people were not worth listening to. They don't know what is good for them.

The State governor belongs to the MEA, UAW and AFSCME. They have her in their pockets.

What she did with her bribes and intimidation and out right extortion was nothing less than criminal but nothing will be done as she is untouchable and this is considered business as usual in politics. In the private sector it would be a criminal offense.

You and the rest of the Republicans with the exception of a couple of RINOS did you best. I commend you all for your hard work under extremely dictatorial conditions created by the House leadership.

It is time for Andy Dillon and Tobbocman to take a hike.

Steph623 said...

Truer words were never spoken. Thank you Jack, for keeping us all informed.

"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Winston Churchill

Anonymous said...

So you're saying State Employees are the "big winner" here?

Seriously? Seriously?

Roda said...

Well said, Jack. Why can't people see the need to keep government in check?

My only fear is that Hillary will win the next election and our whole country will be sent into the same financial morass as Michigan.

Justin Vander Ark said...

Well said Jack. Send this one into the Kalamazoo Gazette.

Anonymous said...

The real losers here are small businesses. We utilize a lot of "business" services such as payroll and marketing because we are not large enough to have our own departments. These will now all be taxed. The cycle of thinking for politicians is no longer than the next election, meanwhile the public gets stuck with the long term effects. This is a depressing and sad day for small businesses like mine. First we get a replacement business tax then this added on top of it.

Dar said...


It is for such a time as this that our constitution provides for recall of public officials -- Democrat and Republican. Shame on those GOP Senators who caved in.


Republican Michigander said...

A hit. With the tax on consulting services, it's more like a size 13 boot in the ribs.

And I have a very long memory on this stuff. Thanks Jack, for staying strong on this. Too bad I can't say the same for others.

And I don't plan on getting mad, but getting even - starting with Granholm.

Radical Right Winger said...

This should be a wake up call for everyone who believes in limited government and free enterprise. It is up to us to change it. It needs to be a grass roots effort. It will take everyone sacrificing their time and money in order to make the necessary changes. No one person or group can do it. If you believe you must take action.

MomToAnAngel said...

How do we start a recall on the Governor? I think this would really help us Michiganians get what we want for a change.

Anonymous said...

Well, I'm glad someone admits that the state workers are making more than their private sector counterparts. I'm sick of them whining about all they've had to give up. Then on top of it, they are the laziest bunch of workers there is because they know they can get away with it. I'm sick of my tax money going to pay their salaries. To me, they are no better than those on welfare.

Anonymous said...

I don't see where The State governor belongs to the MEA, UAW and AFSCME. They have her in their pockets. These are the people hardest hit by the tax increases. Spending dollar is less.

Lets face it, Granholm is Canadian, and in Canada with their ridiculous health care system, and 15% tax on sales, goods and services, we are headed the same way. And each little department with put its sticky fingers into whatever is earned, and very soon, that increase will also not be enough to satisfy the hungry budget appetites.
As always, it is democrat policy to PROVIDE GOVERNMENT PROGRAMS at everyones expense. If the John Q. Public wants PROGRAMS, let them find a way to fund it....Get the government out of the PROVIDING PROGRAMS business. And let the private sector do it.....
Start running this state like a business and not a beauracracy to provide, "hide me in the corner with pay raises and benefits til I retire" type jobs that have little or no benefit to the people of the state of Michigan..
Contract many of these "PROGRAM" type jobs to the private sector, like they did the sale of Liqour, and see how much you save state taxpayers in expenses to operate.