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Thread: The Michigan Model.....

  1. #1
    Senior Member TXduckdog's Avatar
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    Default The Michigan Model.....

    Personally....I think the single biggest issue in the current economy is the state of small to medium sized businesses and their ability to create/sustain jobs.

    You would think that lawmakers would realize that the easier it is for these businesses to exist and prosper...so goes the economy as a whole.

    That being said, the old reliable democratic way of taxation certainly has helped out Michigan, hasn't it?

    "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."

    How can the state which houses the major portion of auto manufacturing have an such an imbalance of public sector vs manufacturing jobs?

    In support of my original premise....where are the efforts to promote a business climate where JOBS are created/sustained? Instead it's just tax, tax, tax.
    "
    Train the dog, the ribbons will take care of themselves.

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    Senior Member Buzz's Avatar
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    Reading this, you would assume that Michigan must have one of the worst tax burdens in the country. In 2008 they were ranked 27th out of 50, with #1 being the highest burden.

    I find it interesting that folks who have likely never set foot in Michigan know exactly what is going on there.
    "For everyone to whom much is given, of him shall much be required." -- Luke 12:48

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    Senior Member TXduckdog's Avatar
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    Quote Originally Posted by Buzz View Post
    Reading this, you would assume that Michigan must have one of the worst tax burdens in the country. In 2008 they were ranked 27th out of 50, with #1 being the highest burden.

    I find it interesting that folks who have likely never set foot in Michigan know exactly what is going on there.
    Nothing like that is implied.....it's just that Michigan is held up to be such a PROGRESSIVE model and the fact that so much money was thrown at them because of the auto industry and is spite of all that.....they are 27th.

    Pitiful.
    Train the dog, the ribbons will take care of themselves.

  4. #4
    Senior Member Buzz's Avatar
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    Michigan has has Republican Governors for 34 of the last 46 years, and 12 of the last 18.
    "For everyone to whom much is given, of him shall much be required." -- Luke 12:48

    Raven - Moneybird's Black Magic Marker***
    (Esprit's Power Play x Trumarc's Lean Cuisine)
    Mick - Moneybird's Jumpin' Jack Flash***
    (Clubmead's Road Warrior x Oakdale Whitewater Devil Dog)
    Peerless - Moneybird's Sole Survivor
    (Two River's Lucky Willie x Moneybird's Black Magic Marker)

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    Senior Member WaterDogRem's Avatar
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    Funny how MI has really gone to the dumps (financially) in the last 6 yrs since Jennifer came into office, but what would you expect from a progressive Canadian. After spending 26 yrs there I had to get out 3 yrs ago, and it's too bad because it really has some great outdoors.

  6. #6
    Senior Member Buzz's Avatar
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    Quote Originally Posted by WaterDogRem View Post
    Funny how MI has really gone to the dumps (financially) in the last 6 yrs since Jennifer came into office, but what would you expect from a progressive Canadian. After spending 26 yrs there I had to get out 3 yrs ago, and it's too bad because it really has some great outdoors.
    She must be really good to have been able to completely ruin a state in 3 years.
    "For everyone to whom much is given, of him shall much be required." -- Luke 12:48

    Raven - Moneybird's Black Magic Marker***
    (Esprit's Power Play x Trumarc's Lean Cuisine)
    Mick - Moneybird's Jumpin' Jack Flash***
    (Clubmead's Road Warrior x Oakdale Whitewater Devil Dog)
    Peerless - Moneybird's Sole Survivor
    (Two River's Lucky Willie x Moneybird's Black Magic Marker)

  7. #7
    Senior Member WaterDogRem's Avatar
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    Quote Originally Posted by Buzz View Post
    She must be really good to have been able to completely ruin a state in 3 years.
    She made a lot of changes soon as she started on Jan 1, 2003. Spending lots of money on broken programs without fixing the problems first or even now.
    I saw the writing on the walls and paid the increased state costs and fees, based on her decisions, choices, views, and wants to do for the state. Since all her ideas ran totally against my principals on how to run a household, I used my American freedom and moved to a State where I could work and agree with their ideals (mostly).

  8. #8
    Senior Member Raymond Little's Avatar
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    Quote Originally Posted by Buzz View Post
    She must be really good to have been able to completely ruin a state in 3 years.
    Obamo will be even better Buzzzzzzz.
    "Character is doing the right thing when nobody is watching"....J.C. Watts

  9. #9

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    Quote Originally Posted by Buzz View Post
    She must be really good to have been able to completely ruin a state in 3 years.
    Obama has ruined the country in less then a year. Although he will take it even lower so he must be really great.

  10. #10
    Senior Member JDogger's Avatar
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    Quote Originally Posted by code3retrievers View Post
    Obama has ruined the country in less then a year. Although he will take it even lower so he must be really great.
    Ya wanna be specific c3r? Or do ya just wanna make broad sweeping generalizations?

    JD
    One cannot reason someone out of something they were not reasoned into. - Jonathan Swift

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