Skip to comments.Michigan lottery, gambling and cigs taxes plummet, Gov. Granholm says decline is "breathtaking".
Posted on 03/12/2009 11:32:18 AM PDT by mombyprofession
by Peter Luke | Lansing Bureau Wednesday March 11, 2009, 6:54 PM
LANSING -- Michigan residents bought fewer Michigan lottery tickets, cigarettes, clothes, restaurant meals and household goods, as they saw the stock market plummet and the economic outlook darken.
The sharp pullback in consumer spending sent sales tax receipts downward 18 percent in February, or more than $100 million. It will force Gov. Jennifer Granholm and lawmakers to cut the budget more, agree on tax increases or use more of the federal economic stimulus money to balance the state's books.
It was the steepest monthly decline in 25 years.
Overall revenue declines total $200 million from forecasts made just seven weeks ago.
Since income tax receipts from paycheck withholding were pretty flat in February, economists say concerned consumers may be putting away their credit cards and spending less.
"The big reason revenues are tanking is that consumers are negative and they're saving their money," Senate Fiscal Agency economist David Zin said Wednesday. "We thought consumers would ratchet up the savings and they've done so even more than we thought."
Also down were tax receipts on specific forms of discretionary spending, according to the agency's new revenue report. Tobacco tax receipts were down 6.7 percent and casino wagering taxes were down 7 percent. Michigan Lottery ticket sales dropped nearly 19 percent. One factor that explains some of the decline from a year ago was that February 2008 provided a 29th day of sales.
Tax collections from the sale of real estate are down 42 percent from a year ago. While the focus of the state's economic woe is the auto sector, sales tax receipts from car sales actually climbed 15 percent last month.
(Excerpt) Read more at mlive.com ...
Granholm’s failures are only exceeded by her inherent stupidty.
“Well, lets tax em’ more”.
Not quite as “breathtaking” as Granholm’s stupidity.
...this woman heads Obama’s “Economic Recovery” panel (or whatever he called it...)
Malt liquor sales remain strong!
LOL. He should take the public school kids to gambing places and get them smoking young
Are Michigan voters the dumbest in the USA yet?
Look at Detroit, use to have what 1.5 million people and now it`s about 800,000 residents.
What a s**t-h**e of a State.
Bath tub gin will make a comeback—LOL!
Instead of “Hail to the Chief”—Jenny takes the stage to “I’m So Ronery”....
Those houses being bought for $1... was that a myth?? I'd hate to see the hood its in
she is so dumb that she isn’t even good at being stupid
They’re selling for that because it will cost more to raze them than the land is worth post-razing.
Vice taxes not working. Governor suggest taxing virtue. 10% tax proposed on savings, charity, and Bible sales. < /sarc, for now>
they should double taxes on all those things and then announce they are going to spend $250 billion they don’t have. That should boost the economy!!
must be such nice neighborhoods!
Yep. Wearing glasses doesn’t change the fact she’s enacted liberal economic theories that were discredited in the 1970’s, that have done what most thought was impossible.
Made the economic situation in Michigan EVEN WORSE than it was the day she was elected.
And yet, the Democratic Party keeps trotting this airhead out as a ‘expert govenor’ as they did just this morning on MSNBC.....
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