Tax It and It Will Leave

The brilliant leadership in Michigan government continues to tax (and regulate) private business. Entrepreneurs love to make profit; they use it to create jobs. They love doing this so much that, when government punishes them, sooner or later, they quietly decide that they have had enough and they find a friendlier tax and regulatory environment. This is happening in Michigan. The evidence? Last month the unemployment rate went up 1.6 points to 8.5%.

The attached article by Detroit News columnist Nolan Finley says it all: http://www.detnews.com/apps/pbcs.dll/article?AID=2008806290301

Here is an excerpt about a local business owner:

"No question that for us, the Michigan Business Tax and the ridiculous surcharge are affecting our ability to hire workers," says David Rhoa of Lake Michigan Mailers, a document processing firm. "I can pay money to hire more workers, or I can pay it to the state, but I can't do both."

Rhoa has 56 employees in Kalamazoo, a city that might have had 15 more had Michigan been competitive. Instead, Rhoa took his expansion to Indiana.

"We settled on South Bend for two reasons -- the Michigan tax increase and the minimum wage hike," says Rhoa, whose payroll ranges from near-minimum-wage workers to higher-skilled employees. "Indiana has one other thing Michigan doesn't have -- a pro-business attitude."

Even without asking, Rhoa says, Indiana offered him a tax abatement and paid for training his new hires. Rhoa says he is frustrated that Michigan doesn't weigh the consequences of policies. "When Gov. Granholm was promoting her Give Michigan A Raise campaign, she said that minimum wage workers would spend the extra money in local businesses and everyone would benefit. But that money didn't just materialize. It's money I would have invested in new trucks and equipment to create more jobs. They don't get it."

Tax It and It Will Leave

The brilliant leadership in Michigan government continues to tax (and regulate) private business. Entrepreneurs love to make profit; they use it to create jobs. They love doing this so much that, when government punishes them, sooner or later, they quietly decide that they have had enough and they find a friendlier tax and regulatory environment. This is happening in Michigan. The evidence? Last month the unemployment rate went up 1.6 points to 8.5%.

The attached article by Detroit News columnist Nolan Finley says it all: http://www.detnews.com/apps/pbcs.dll/article?AID=2008806290301

Here is an excerpt about a local business owner:

"No question that for us, the Michigan Business Tax and the ridiculous surcharge are affecting our ability to hire workers," says David Rhoa of Lake Michigan Mailers, a document processing firm. "I can pay money to hire more workers, or I can pay it to the state, but I can't do both."

Rhoa has 56 employees in Kalamazoo, a city that might have had 15 more had Michigan been competitive. Instead, Rhoa took his expansion to Indiana.

"We settled on South Bend for two reasons -- the Michigan tax increase and the minimum wage hike," says Rhoa, whose payroll ranges from near-minimum-wage workers to higher-skilled employees. "Indiana has one other thing Michigan doesn't have -- a pro-business attitude."

Even without asking, Rhoa says, Indiana offered him a tax abatement and paid for training his new hires. Rhoa says he is frustrated that Michigan doesn't weigh the consequences of policies. "When Gov. Granholm was promoting her Give Michigan A Raise campaign, she said that minimum wage workers would spend the extra money in local businesses and everyone would benefit. But that money didn't just materialize. It's money I would have invested in new trucks and equipment to create more jobs. They don't get it."

Quote of the Day...but Which One?

Michigan Mismanagement Madlibs

Read the sentence below and then fill in the blanks with one of the four options below.

"The best way for us to run safe and secure ____ is to understand what the ____ desires, needs and wants are and to respect them as human beings."

A. citizen's lives; state bureaucrats'
B. legislatures; tax-spenders'
C. K-12 budgets; MEA's six-figure executives'
D. prisons; inmates'

The answer is:

"D"

This is what Russ Marlan, spokesman for the Corrections Department really said in response to an Auditor General report that said we could save nearly 50% ($30 million+) on food service to the prisons by privatizing services.

Hey, I am all for humane treatment of our fellow humans, but did we somehow forget what words like "penitentiary" and "corrections" mean? And besides, no one ever said we had to give inmates substandard food, the Auditor General simply said we could save millions if we privatized the food services in the prisons.

You can read the Auditor General report at http://audgen.michigan.gov/comprpt/docs/r471062107L.pdf

The Detroit News did a good story on the issue. You can read it at: http://www.detnews.com/apps/pbcs.dll/article?AID=/20080624/POLITICS/806240375/&imw=Y

You can also read my essay on this issue by subscribing to "Core Principles." Simply email me at jackhoogendyk@gmail.com with the word "subscribe" in the subject line.

Quote of the Day...but Which One?

Michigan Mismanagement Madlibs

Read the sentence below and then fill in the blanks with one of the four options below.

"The best way for us to run safe and secure ____ is to understand what the ____ desires, needs and wants are and to respect them as human beings."

A. citizen's lives; state bureaucrats'
B. legislatures; tax-spenders'
C. K-12 budgets; MEA's six-figure executives'
D. prisons; inmates'

The answer is:

"D"

This is what Russ Marlan, spokesman for the Corrections Department really said in response to an Auditor General report that said we could save nearly 50% ($30 million+) on food service to the prisons by privatizing services.

Hey, I am all for humane treatment of our fellow humans, but did we somehow forget what words like "penitentiary" and "corrections" mean? And besides, no one ever said we had to give inmates substandard food, the Auditor General simply said we could save millions if we privatized the food services in the prisons.

You can read the Auditor General report at http://audgen.michigan.gov/comprpt/docs/r471062107L.pdf

The Detroit News did a good story on the issue. You can read it at: http://www.detnews.com/apps/pbcs.dll/article?AID=/20080624/POLITICS/806240375/&imw=Y

You can also read my essay on this issue by subscribing to "Core Principles." Simply email me at jackhoogendyk@gmail.com with the word "subscribe" in the subject line.

Food Fight in State Prisons

Once again, the Office of the Auditor General (OAG) has identified massive waste and mismangement in state government. This time it is in the corrections budget. I was planning to write a detailed report on what the OAG uncovered, but the Detoit News has already done a stellar job. The link to their article is below.

Is There a Food Fight Going on Here?

The bottom line on the OAG report is that perhaps $38 million, nearly half the entire food budget, could be saved if the corrections department simply handed over inmate food services to a private company. Oakland County Sheriff Michael Bouchard has been demonstrating for several years that this practice works. You can read the Detroit News story here.
 
For further in-depth information, you can read the full OAG report here.

A Letter From Clare Rothi

The Michigan Business Tax with its 22% surcharge has been a real job-killer. The attached letter from a constituent is a typical example of how the MBT has stifled job creation and investment.

What are the Core Principles?

A Letter From Clare Rothi

Premium Finance Corporation is a small business located in Kalamazoo.  We have grown from one employee in 1989 to six today. We have about 350 customers.
 
Small businesses are the major job providers in most economies.  They raise capital from their own savings, loans by friends or the bank, by issuing stock or from personal guarantees by the owners.
 
Under the new MBT our tax liability went up nearly six-fold, from just under $10,000 to nearly $55,000 Why? Because of the "family attribution rule." When the MBT was implemented consideration was given to small business by the creation of the Alternative Profits Tax.  The three criteria are:

1. Less than $20 million in Gross Receipts


2. Less than $1.3 million in Adjusted Business Income


3. Less than $180 thousand in Attributable Personal Income

Although my personal income is less than $180,000, my business still exceeds the $180,000 threshold because members of my family have invested in our company and under the attribution rule, their income is combined with mine. As a result, we exceed the $180,000 threshold of Attributable Income and thus are penalized by almost $45,000-a 450% increase over last year.
 
This new tax has created problems for more companies than just ours.   A recent Michigan State Chamber survey revealed that 80% of businesses found the MBT to be a bigger burden than the SBT. When they were asked how they'd deal with the tax hike:

• 31 percent said they would delay or cancel salary increases


• 21 percent said they would delay or cancel capital investment


• 15 percent said they would move or cancel location/expansion plans


• 14 percent said they would lay off employees

Our business has an exit strategy for its investors.  To get our ownership low enough to fall below the $180,000 threshold of attributable income, we could borrow those dollars and pay interest.  This would increase our expense, reduce our profits and of reduce taxable income, thus depriving the State of much needed taxes.  At a time when the State is trying to encourage investment and foster a positive image the new tax is being counter productive.

What is the Solution?

The Michigan Business Tax should be repealed immediately. But at a bare minimum, the ill-conceived 22% surcharge, which was created as a last minute replacement for the service tax, must be repealed.

Someone said, "Never bring a bomb to a gunfight."

From various media reports... An attempted bank robbery in Canton, Michigan played out like a scene from a movie Monday when a man who police say claimed to have a bomb was stopped by a customer armed with a pistol.

The drama started just after a bank on Michigan Ave. opened around 9 a.m. Police say 54-year-old Joseph Webster from Washtenaw County walked up to a teller and handed her a note claiming he had a bomb strapped to his body.

The fast-thinking teller hit the silent alarm while filling a bag with money. Another teller saw the situation unfolding and alerted Nabil Fawzi, 39, a long-time customer. He pulled out a .9 mm handgun (for which he had a CCW permit), racked a bullet in the chamber, pointed it at Webster and announced, "You are not robbing this bank!" The startled Webster countered with, "but, I have a bomb." Fawzi wasn't impressed. "I don't care. You are not robbing this bank!" He then forced the Webster into a chair and held him at gunpoint until police arrived.

Police reported there were no injuries, no issues with Fawzi's CCW permit, and no bomb found at the scene. Of special note is the fact that no one was injured and the criminal was safely held until police were able to respond at a later time. Incidentally, some banks apparently have a policy prohibiting its employees from carrying a weapon of self-defense.

Someone said, "Never bring a bomb to a gunfight."

From various media reports... An attempted bank robbery in Canton, Michigan played out like a scene from a movie Monday when a man who police say claimed to have a bomb was stopped by a customer armed with a pistol.

The drama started just after a bank on Michigan Ave. opened around 9 a.m. Police say 54-year-old Joseph Webster from Washtenaw County walked up to a teller and handed her a note claiming he had a bomb strapped to his body.

The fast-thinking teller hit the silent alarm while filling a bag with money. Another teller saw the situation unfolding and alerted Nabil Fawzi, 39, a long-time customer. He pulled out a .9 mm handgun (for which he had a CCW permit), racked a bullet in the chamber, pointed it at Webster and announced, "You are not robbing this bank!" The startled Webster countered with, "but, I have a bomb." Fawzi wasn't impressed. "I don't care. You are not robbing this bank!" He then forced the Webster into a chair and held him at gunpoint until police arrived.

Police reported there were no injuries, no issues with Fawzi's CCW permit, and no bomb found at the scene. Of special note is the fact that no one was injured and the criminal was safely held until police were able to respond at a later time. Incidentally, some banks apparently have a policy prohibiting its employees from carrying a weapon of self-defense.

Go Ahead! Overextend Yourselves, Be Irresponsible! We Will Bail You Out!

Now moving through the House, an eleven bill package. This package of legislation seeks to curb "predatory" lending practices related to home mortgages. It defines "high cost" loans and places additional compliance and judgment responsibilities on mortgage brokers and lenders, but exempts depository lenders such as traditional banks and credit unions.

This package would greatly alter the nature of the role of brokers or lenders by forcing them to make subjective judgments about whether a loan is "reasonably advantageous" for a borrower or whether a refinancing loan would provide a "net tangible benefit" to a borrower. In effect, the broker or lender would assume an unprecedented fiduciary responsibility. The potential for conflict arising from these subjective judgments and subsequent interpretations would cause the
sources of mortgage money to simply avoid Michigan.

A borrower could default and claim that a loan agreement was not "reasonably advantageous" or did not provide a "net tangible benefit" as directed by the act. The broker or lender would then be subject not only to a potential financial loss, but also civil and criminal penalties.

This package would effectively end the availability of sub-prime or non-conforming mortgage loans, even for consumers for which such loans are a viable option for achieving home ownership.

The foreclosure crisis in Michigan is also a product of tough economic times which are also affecting many traditional or conventional mortgages. This package does not address the underlying economic problems that created much of the crisis.

The package unfairly exempts depository institutions such as banks, savings banks and credit unions, and would potentially increase their market share of mortgage lending, especially if they become more active in sub-prime, non-conforming or non-traditional mortgage loan products.

The assumption here is that those who are in this difficult situation are somehow victims of unscrupulous or predatory lenders. Certainly that does happen, but in most cases they are only victims of their own poor judgement or flat out greed.

Go Ahead! Overextend Yourselves, Be Irresponsible! We Will Bail You Out!

Now moving through the House, an eleven bill package. This package of legislation seeks to curb "predatory" lending practices related to home mortgages. It defines "high cost" loans and places additional compliance and judgment responsibilities on mortgage brokers and lenders, but exempts depository lenders such as traditional banks and credit unions.

This package would greatly alter the nature of the role of brokers or lenders by forcing them to make subjective judgments about whether a loan is "reasonably advantageous" for a borrower or whether a refinancing loan would provide a "net tangible benefit" to a borrower. In effect, the broker or lender would assume an unprecedented fiduciary responsibility. The potential for conflict arising from these subjective judgments and subsequent interpretations would cause the
sources of mortgage money to simply avoid Michigan.

A borrower could default and claim that a loan agreement was not "reasonably advantageous" or did not provide a "net tangible benefit" as directed by the act. The broker or lender would then be subject not only to a potential financial loss, but also civil and criminal penalties.

This package would effectively end the availability of sub-prime or non-conforming mortgage loans, even for consumers for which such loans are a viable option for achieving home ownership.

The foreclosure crisis in Michigan is also a product of tough economic times which are also affecting many traditional or conventional mortgages. This package does not address the underlying economic problems that created much of the crisis.

The package unfairly exempts depository institutions such as banks, savings banks and credit unions, and would potentially increase their market share of mortgage lending, especially if they become more active in sub-prime, non-conforming or non-traditional mortgage loan products.

The assumption here is that those who are in this difficult situation are somehow victims of unscrupulous or predatory lenders. Certainly that does happen, but in most cases they are only victims of their own poor judgement or flat out greed.

Gore Still Sucking Up the Energy

June 17, 2008

by Paul Chesser, Climate Strategies Watch

Our friends at the Tennessee Center for Policy Research have been looking at Al Gore's personal residential energy consumption again, and things are only getting more embarrassing for the world's foremost global warming alarmist:

In the year since Al Gore took steps to make his home more energy-efficient, the former Vice President’s home energy use surged more than 10%, according to the Tennessee Center for Policy Research.

“A man’s commitment to his beliefs is best measured by what he does behind the closed doors of his own home,” said Drew Johnson, President of the Tennessee Center for Policy Research. “Al Gore is a hypocrite and a fraud when it comes to his commitment to the environment, judging by his home energy consumption.”

In the past year, Gore’s home burned through 213,210 kilowatt-hours (kWh) of electricity, enough to power 232 average American households for a month.

Gore Still Sucking Up the Energy

June 17, 2008

by Paul Chesser, Climate Strategies Watch

Our friends at the Tennessee Center for Policy Research have been looking at Al Gore's personal residential energy consumption again, and things are only getting more embarrassing for the world's foremost global warming alarmist:

In the year since Al Gore took steps to make his home more energy-efficient, the former Vice President’s home energy use surged more than 10%, according to the Tennessee Center for Policy Research.

“A man’s commitment to his beliefs is best measured by what he does behind the closed doors of his own home,” said Drew Johnson, President of the Tennessee Center for Policy Research. “Al Gore is a hypocrite and a fraud when it comes to his commitment to the environment, judging by his home energy consumption.”

In the past year, Gore’s home burned through 213,210 kilowatt-hours (kWh) of electricity, enough to power 232 average American households for a month.

MEDC to Legislature: Trust Us!

HB 6208, introduced by Rep. Ed Clemente on June 5, 2008, to allow the “21st Century Jobs Fund” to purchase convertible loans, equity investments, or warrants, and also make some minor revisions to the fund’s procedures.

The bill is apparently targeted at a couple of specific projects that are also being courted by Tennessee and Alabama. According to the MEDC, enactment of the legislation is time sensitive and if the bill is not enacted by summer break, Michigan will not be a contender for the projects. MEDC says it is not permitted to disclose the specific companies that are being targeted.

So, the MEDC wants us to give them $18.1 million with no real restrictions to lure two unnamed manufacturers to Michigan, but MEDC can't tell us, (the ones appropriating the money) who it is. Somehow, it just doesn't seem right that the legislature is being asked to spend money-give the MEDC an open checkbook-that they can't tell us who the money is for.

And oh, by the way, if the projects fall through, they get to keep the money and use it however they see fit as long as it is for future "economic development projects."

They used to say the two great lies were "I'm from the government and I'm here to help" and "Trust me." Now we have combined them into one statement. "Trust me with your money, I am from the government and I am here to help."

The bill passed today.

MEDC to Legislature: Trust Us!

HB 6208, introduced by Rep. Ed Clemente on June 5, 2008, to allow the “21st Century Jobs Fund” to purchase convertible loans, equity investments, or warrants, and also make some minor revisions to the fund’s procedures.

The bill is apparently targeted at a couple of specific projects that are also being courted by Tennessee and Alabama. According to the MEDC, enactment of the legislation is time sensitive and if the bill is not enacted by summer break, Michigan will not be a contender for the projects. MEDC says it is not permitted to disclose the specific companies that are being targeted.

So, the MEDC wants us to give them $18.1 million with no real restrictions to lure two unnamed manufacturers to Michigan, but MEDC can't tell us, (the ones appropriating the money) who it is. Somehow, it just doesn't seem right that the legislature is being asked to spend money-give the MEDC an open checkbook-that they can't tell us who the money is for.

And oh, by the way, if the projects fall through, they get to keep the money and use it however they see fit as long as it is for future "economic development projects."

They used to say the two great lies were "I'm from the government and I'm here to help" and "Trust me." Now we have combined them into one statement. "Trust me with your money, I am from the government and I am here to help."

The bill passed today.

Democrats Forgot What They Learned in Kindergarten

In 1986, author Robert Fulghum wrote a book called  All I Really Need to Know, I Learned in Kindergarten." Granted, it is a simplistic look at life, but it does teach some basic life lessons. The second rule in his list is, "Play Fair."
On the left margin, you see a list of the "Core Principles" from our friends at the Mackinac Center. The first principle listed is "The Rule of Law." So, what does this have to do with the Democrats behavior lately?

If You Can't Win Within the Rules, Cheat

In our system of government, the majority party has a lot of advantages in the legislative process. They have the gavel, the leadership, the committee chairs. They decide which bills are heard and which are not.
But even under this system, the minority party has a right to be heard. The Michigan House operates under "Mason's Rules." They allow the minority to offer amendments. It can be an effective way to improve bills on the floor or get other bills out for debate.
 
But this is all predicated on the assumption that everyone plays fair; that both parties observe the "rule of law" regarding procedure. There are still plenty of ways that the majority can maintain control, or the minority can get things done, all within the rules.
 
The Republican minority, in an attempt to make improvements to bills on the floor, or to force the Democrats to take up important legislation have offered amendments to bills as they were being considered on the House floor. This is how it is supposed to work. Anyone who has an amendment simply has to raise his hand to be recognized, offer his amendment and then, if he desires, ask for a "recorded roll call vote" on his amendment. If at least 22 members, one-fifth of the House, raise their hands, there must be a recorded roll call vote. This puts legislators in the position of making their vote public.
 
Lately, the Democrats in control have decided to ignore the rules altogether. In fact, over the last couple of months, the Speaker Pro-Tem has refused to recognize members who wish to speak on amendments, or to allow roll-call votes. In fact, Republicans have been shut off, in blatant violation of the rules over 350 times. What is most unfortunate about this is that over 4.5 million voters, the constituents in Republican districts, have been effectively silenced.
 
As a result, such bills as the Transparency Act, improvements to spending bills, education bills, denial of state funding for illegals, and repeal of the Michigan Business Tax surcharge won't even have an opportunity for debate on the House floor.
 
The media, who watches this circus unfold daily, apparently does not consider it newsworthy information and has largely neglected to tell you about it.
 
I know what you are thinking; the Republicans did the same thing when they were in control. I will readily acknowledge there were times when Democrats were shut out of the process. But does that suddenly make it OK? Is turnabout really fair play? Are we not adults here?
 
If there is one message coming from voters it is that they don't like the legislature and think we incompetent. But the situation in the House is not because we are incompetent, it's because we forgot what we learned in Kindergarten.

House Passes K-12 Budget With $32.2 Million Deficit

Last night the House passed the K-12 budget for the new budget year. This budget grows by 23% in general fund spending and 4% in total spending. For the first time in my memory, a bill has passed that actually spends MORE than the funds available. It is in the RED by over $32 million.

It includes several new or expanded programs that, although laudable in their intent, are inadvisable in a year when funds are not available. Some of the programs included in this year's budget are:

• $32 million for new Small High School Infrastructure Program. It makes available up to $300 million of bond revenue to build new small schools in places like Detroit
• $22 million increase in School readiness grants for 7,000 additional "at risk" four-year-olds
• $5 million increase in Great Start Communities Grants
• $2 million increase in School Based Health Centers
• $300,000 for Communities in Schools programs

In addition, the bill cuts by 1/2 the foundation grant for schools that offer 1/2 day kindergarten. This, in effect, mandates full day kindergarten for all schools.

You can judge for yourself the value of each of these programs and whether we are getting our money's worth, but the bottom line is, we now have a proposed budget of $13.4 billion.

House Passes K-12 Budget With $32.2 Million Deficit

Last night the House passed the K-12 budget for the new budget year. This budget grows by 23% in general fund spending and 4% in total spending. For the first time in my memory, a bill has passed that actually spends MORE than the funds available. It is in the RED by over $32 million.

It includes several new or expanded programs that, although laudable in their intent, are inadvisable in a year when funds are not available. Some of the programs included in this year's budget are:

• $32 million for new Small High School Infrastructure Program. It makes available up to $300 million of bond revenue to build new small schools in places like Detroit
• $22 million increase in School readiness grants for 7,000 additional "at risk" four-year-olds
• $5 million increase in Great Start Communities Grants
• $2 million increase in School Based Health Centers
• $300,000 for Communities in Schools programs

In addition, the bill cuts by 1/2 the foundation grant for schools that offer 1/2 day kindergarten. This, in effect, mandates full day kindergarten for all schools.

You can judge for yourself the value of each of these programs and whether we are getting our money's worth, but the bottom line is, we now have a proposed budget of $13.4 billion.

Department of Community Health Budget

This budget SB1094, increases by 3.4%. We now spend $12.4 BILLION. It is $30 million more than the Governor proposed and we have $300 million less available than when the Governor made her proposal. We are now spending $3.1 billion in general fund dollars. (We actually did lower general fund spending by $3.8 million due to increased federal matching funds and other program savings resulting from federal and state policy changes.)

We are once again giving Medicaid benefits to 19 and 20 year-olds.

Department of Community Health Budget

This budget SB1094, increases by 3.4%. We now spend $12.4 BILLION. It is $30 million more than the Governor proposed and we have $300 million less available than when the Governor made her proposal. We are now spending $3.1 billion in general fund dollars. (We actually did lower general fund spending by $3.8 million due to increased federal matching funds and other program savings resulting from federal and state policy changes.)

We are once again giving Medicaid benefits to 19 and 20 year-olds.

Budgets are Moving in the House

Today we voted out SB1096, the Department of Education Budget. (This is NOT the K-12 budget.) This budget comes out of the House with a 14% increase in general fund spending, ($999,100).

Budgets are Moving in the House

Today we voted out SB1096, the Department of Education Budget. (This is NOT the K-12 budget.) This budget comes out of the House with a 14% increase in general fund spending, ($999,100).

Educating You About Arthritis is Now Our Responsibility

HB 5364 (H-1) amends the public health code to direct the department of community health (DCH) to create a statewide program to promote public awareness about the causes of arthritis. This act would be named the "Arthritis Prevention and Control Act."

It would cost about $1 million in General Fund Money to pay for this program...

Educating You About Arthritis is Now Our Responsibility

HB 5364 (H-1) amends the public health code to direct the department of community health (DCH) to create a statewide program to promote public awareness about the causes of arthritis. This act would be named the "Arthritis Prevention and Control Act."

It would cost about $1 million in General Fund Money to pay for this program...

The Takings Coalition Strikes Again

House just passed HB5068. This bill is tie barred to the Great Lakes Compact. This bill would lower the groundwater use threshold that would require a new commercial or industrial user to undergo extensive permitting procedures. The threshold would go from 2,000,000 gallons to 1,000,000 gallons per day for waters other than the Great Lakes, and from 5,000,000 gallons to 2,000,000 gallons per day for Great Lakes and tributary waters. Among the extensive permit requirements would be the need to perform rigorous hydro-geological, water source, natural features, and soil studies. The bill would also increase permit application fees, lengthen from 120 days to 180 days the time the Department of Environmental Quality has to act on a permit request (once it determines that the application is “administratively complete”), and require a public comment period. The bill is part of a legislative package consisting of House Bills 5065 to 5073 that would restrict and subject to extensive regulation the use of groundwater by industrial and commercial businesses.

How much water is one million gallons? If Michigan receives 1" of rain in one day, that equals 1.7 BILLION gallons. (170,000 million gallons).

Large manufacturers like pharmaceuticals, chemicals, automobiles use large amounts of water; they have been doing so for decades in this state. There has been no negative effect on ground water levels. Lakes rise and fall, it has been happening for thousands of years. This legislation is nothing less than government taking away private property rights.

The Takings Coalition Strikes Again

House just passed HB5068. This bill is tie barred to the Great Lakes Compact. This bill would lower the groundwater use threshold that would require a new commercial or industrial user to undergo extensive permitting procedures. The threshold would go from 2,000,000 gallons to 1,000,000 gallons per day for waters other than the Great Lakes, and from 5,000,000 gallons to 2,000,000 gallons per day for Great Lakes and tributary waters. Among the extensive permit requirements would be the need to perform rigorous hydro-geological, water source, natural features, and soil studies. The bill would also increase permit application fees, lengthen from 120 days to 180 days the time the Department of Environmental Quality has to act on a permit request (once it determines that the application is “administratively complete”), and require a public comment period. The bill is part of a legislative package consisting of House Bills 5065 to 5073 that would restrict and subject to extensive regulation the use of groundwater by industrial and commercial businesses.

How much water is one million gallons? If Michigan receives 1" of rain in one day, that equals 1.7 BILLION gallons. (170,000 million gallons).

Large manufacturers like pharmaceuticals, chemicals, automobiles use large amounts of water; they have been doing so for decades in this state. There has been no negative effect on ground water levels. Lakes rise and fall, it has been happening for thousands of years. This legislation is nothing less than government taking away private property rights.

Where Does Carl Levin stand on raising your taxes?

The tax cuts enacted during President George Bush's first term provided relief for millions of Americans. By the end of 2007, Americans had kept over $1 TRILLON of their own money and kept it away from the politicians in Washington. If these tax cuts are allowed to expire, it will mean huge increases for all manner of "rich" people. For instance:

• 48 million married couples will face a $3,007 increase on average


• 12 million single women with dependents will face a tax increase averaging $1,091


• 18 million seniors will face a $2,181 average tax increase


• 27 million small business owners will see a $4,066 tax increase on average.

These pending tax increases will be devastating for average American families.  A typical family will pay $500 more per child in taxes, and 43 million families with children will face an average tax increase of $2,323.  American families are facing higher costs in the grocery line and at the gas pump.  Americans deserve to keep more of their income.  If Congress allows the President's tax relief to expire:

• A single parent with two children earning $30,000 would see an increase of over $1,600 in taxes. (an additional 5.3% of their income)


• A family of four earning $40,000 would see an increase of over $2,300 in taxes


• A family of four earning $50,000 would see an increase of over $2,100 in taxes - an increase of 191 percent


• A family of four earning $60,000 would see a tax increase of approximately $1,901 in taxes - an increase of 70 percent

There is no question that the Bush tax cuts have been a huge benefit to middle and lower income taxpayers - families and small business owners. Yet Democrats like Carl Levin, who have an insatiable appetite for spending more of YOUR money, are highly unlikely to vote to extend the tax cuts. They will expire at the end of 2010. But, maybe before then, Carl Levin won't be our Senator...

For five-plus years as a State Rep I have held the line on taxes and spending. I promise you that as your Senator I will vote to make the Bush tax relief package permanent.
 
DATA PROVIDED BY THE WHITE HOUSE OFFICE OF THE PRESS SECRETARY

Global Warming Update!

Headline in the May 30 Kalamazoo Gazette:

Cold Temps Force Rose Society to Cancel Show

Global Warming Update!

Headline in the May 30 Kalamazoo Gazette:

Cold Temps Force Rose Society to Cancel Show