Posted on 10/20/2009 2:27:25 PM PDT by rhema
State lawmakers will soon face large budget deficits again, perhaps as much as $100 billion across the U.S. Here's some free budget-balancing advice: Steer clear of the Michigan model. The Wolverine state is once again set to run out of money, and it is once again poised to raise taxes even as jobs and businesses disappear.
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.
(Excerpt) Read more at online.wsj.com ...
They ask for it.
The only way our jobless rate will go down is when the jobless move out of the state looking for work...
It is sickening to me because it is all built on redistribution of personal wealth to those who help elect the corrupt politicians.
I wonder how many more have abandoned their foreclosed homes and moved away.
Sorry, but I don’t ask for that. Moreover, the western side of Michigan remains fairly conservative.
And 2 years ago there were radio ads inviting businesses to move to Michigan via tax reduction incentives. Only chumps would take up that offer from the commie Gov.
To paraphrase an old expression.
As General Motors goes so goes Michigan.
Recipe for current and future economic disaster!
Michael Moore got his tax reduction incentive.
The film industry is thriving.
You hit the nail on the head. I am visiting in Michigan right now and almost everyone I talk to say that they will not leave Michigan to look for new work. They are accepting unemployment, hoping for disability after that (Michigan has very liberal disability requirements), and then Social Security retirement. Many are accepting a lower standard of living. They don’t see how this will affect their children. Instead of seeing the need to leave, they are instead surrendering to Government care. I’m in the Upper Peninsula of Michigan and a large percentage are obese. The unemployment here is over 20% but the Wal Mart and McDonalds are packed. The obesity is really a shocker though.
Taxing your state into prosperity never works. Neither does punishing business into success and expansion. The liberal Democrat business model is on display in Michigan. Soon the only people left there will be those that can’t leave or those that won’t leave because of the plentiful benefits and handouts afforded to the permanently lazy class.
This move by the gov of Michigan is designed to bankrupt Michigan. That’s the designed plan. These democrats aren’t a bunch of dum-dumbs - they know these ideas bring economic misery but the more people depend on the state (no matter how miserable) the better.
The left and the democrats deliberately destroyed manufacturing in America. We still manufacture, but much less than before and that’s by design. If people, like in the past, can go straight from high school to a decent manufacturing job, then they ain’t going to buy into the “socialist revolution” but if government can “budge” those jobs to leave or close down shop by making life very ornery for the factory and it’s owner, well then, the left thinks the “disillusioned” former manufacturing employees will stupidly join up for all the leftist causes.
It worked. Michigan is a basketcase. Not an accident. Not the result of “dumb dumbs” but by deliberate design.
Sorry about that. The majority of people in Michigan ask for it.
My family was one of the first to permanently settle northern Michigan back in the 1840s (our original homestead cabin still stands in Emmet county). I am sickened to watch what has happened to our beloved state. As almost a sign from above, my father and grandfather both passed away this year - and the rest of us male children have moved out of state over the years. We have both spiritually and physically abandoned what was once a paradise for my family. I’m sure my ancestors are rolling in their graves at what has happened.
It’s too bad for you, but your state BEGGED for it. They got it coming!
I have relatives in western Mich. I watched one let his 20 somethings daughters car get repoed, which the loan was in his name. Both him and his wife, and his daughter were unemployed. They have money for McDs. They have money for cigarettes. They have money for Dairy Queen. They have money for cell phones. Plus satelite tv, Xbox AND PS2 and at least 3 computers in the house, with high speed internet.
Days after the car got repoed, we were at a family gathering. One family member urgently needed some farm hands for a few hours. When my one relative got a check for helping out, he was going to buy a scuba mask and fins with it.
Oh yeah, they're about to get their house forclosed on.
Obesity there is hugh (Yes, pun is intended). I see the women there 40-50-60 lbs over weight, "complaining" about knee problems and or back problems. They all plan on going to doctors to claim disabilities so they won't have to work.
I hear them talking of these ideas. Its not really that they're so bad physically. They just want to play the system, and of course get out of working.
Of course I'm the lucky one. Or the rich one. Even though I'm just an ordinary construction worker, and might be out of work at times.
I hear my relatives complain when welfare makes them take part time jobs washing dishes.
One relative, who I don't think has ever had a real job, other than babysitting kids, said she'd NEVER work at McDs or Burger King, or even as a greeter at Wally World.
If any of them drive a 1/2 hour to work, you'd think they were deserving of extra pay for it.
10 hour work days, are torture. 6 day work days, slavedriving.
One relative complained that on her day off from her one PART TIME job, her other PART TIME job called her in. She was indignant, and didn't feel it was "FAIR" that she didn't have a day off.
Sometimes it seems like a real life Jeff Foxworthy or Larry The Cable Guy joke.
Thanks for the correction.
Chortle. The majority of dead people voting (twice) ask for it...
Yeah, right. Whatever. Belated welcome to FR.
Giggle. Thanks. This gets my vote for "Post of the Day."
Ping for the Michigan list.
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
We still haven't been able to sell our home and it's been nearly three years.
I’ve already got the sign for the back of the moving van.
“Another Michigan family blown away...Thanks Jenny!”
As of Novemebr 30, I will no longer be a Michigan Freeper. I will be a Maryland Freeper
Can't comment on that, but do know a bunch of fellow GM retirees who can't sell at any reasonable price but would love to leave.
They are just putting on the fat, for insulation before they hibernate
“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.”
Obama and Co.’s model for America!
Thanks a lot Jenny.
Then they could do what they are doing in California, buy another house while still making payments to the first and then abandon the first.
The guys I’m talking about are long timers who either have paid off or minimal loan balances left.
attaboy cyclotic. Congrats on your new job. There is life after Jennys socialist utopia. You will find that there is life out there after all, and that the main topic o conversation is NOT unemployment and misery.
Blown away, indeed!
We were able to sell out and get out of Michigan in 2008. Our home in western Michigan had been listed for over three years and we finally sold at about 50% of it’s 2004 appraised value and we were thankful for that. It was our first offer. Even though we reduced our rate several times, our selling price always seemed to be out of sync with what was selling.
As we discussed reducing the price over the years, our real estate agent would dutifully compile the “comps” and arrive at a new lower number. In hindsight, the problem was the actual market was (is still) falling at a rate faster than the “comps” can calculate. Our selling price was always viewed as too high for the current market to generate interest.
In 2008, I undertook the tact of “jumping the rate”, much to the chagrin of my agent. When the agent came up with their “new” reduced rate, I reviewed the past four drops and calculated our new rate to compensate for the falling market and jumped ahead of the falling market. Our new rate, which we sold at was right in the ballpark for what was actually selling AT THAT TIME. Had I instituted that step back in 2005 or 2006, I may have sold at tens and tens of thousands more. Maybe. Can not tell you how bad it is up there.
Before you scoff too much, in Ohio if you want a union plumber to come out to your house and do some work, be prepared to pay him for his drive time--regular union plumber rate. No wonder there are so many "handyman" businesses under the radar, and so many union pissants whining about the economy.
This bitch granholm has destroyed one million jobs in Michigan. This bitch has stolen billions from productive communities and given the money to fat, useless welfare slobs in Detroit, Lansing and Saginaw who want obuma dollars. This bitch has raised property taxes across Michigan so fat welfare mommas can watch big screen TVs and drink beer. This bitch has destroyed the realty market so good citizens can’t sell their homes for even half what they were worth five years ago so they can leave and start a new life elsewhere. This bitch has destroyed the labor market to where young people are the primary export in Michigan.
On the other hand, if your an employee, you must go to where the job is. Unless you have a skill that allows you special considerations, travel is your problem.
If you need a plumber you got to pay his wage, whatever it is. If you can get away with a handyman, go ahead.
I just got off a job that took me 2 hrs. to get to work. I do what I have to do.
Good for you and your family. Don’t think we could sell the house in south Warren.
If I wasn’t married, I’d like to be ... by Jenny.
Wanna buy my house? I’ll be glad to move somewhere else. Maybe someplace warm.
“637,000 public employees in Michigan compared to fewer than 500,000 workers”
How in God’s good name does an atrocity like this EVER happen?!!
And:
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.
Soon the only the people remaining in Michigan will be public employees. What businesses are they going to tax then?
Good luck in Maryland, but it is also a Democrat-dominated state.
Elections have consequences, luckily we have exported MI’s economy to the rest of the nation.
I would normally consider Jenny from the bloc to be ignorant of economic principles. However, in the case of the movie industry she offered tax incentives and that industry is increasing in MI. That tells me that she knows how to stimulate business activity, the fact that she is chosing her favored industry for success while she is penalizing all other business tells me that she is pure evil.
You are 100% wrong. Ask nearly anyone in SE MI, it is still Bush’s fault! (is a sarc tag really needed...)
Come on, get with the program. You're better off but refuse to admit it. You're a racist and want Obama to fail.
(Do I have the rant down right?)
Ya..but manufacturing and farming are the only activities capable of bringing real cash and value into the state?
You didn’t ask for it though. In all seriousness, what’s the situation for you in Michigan? Are the rest of the Michiganders seeing the light? Or do they think Bush did this to them?
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