Post by jgaffney on Jun 9, 2008 0:16:38 GMT -5
Withthe $14 b-b-b-billion deficit projected for the state budget, the Dems in the Legislature are lining up to tell us how they will tax us back into prosperity. They may want to consider the recent experiences in Michigan. This is from the Wall Street Journal:
Oh, but the mavens in Sacramento won't raise your taxes! They'll just raise taxes on the rich (said with a snarl)! Unfortunately, the definition of "the rich" is pretty hard to pin down, so it will probably end up including you. Also, most of "the rich" are the ones generating jobs in this economy. That's how they got rich in the first place. Raising their taxes will certainly have an effect on the unemployment rate.
Winston Churchill said, "We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Sounds about right to me.
Officials in Lansing reported this month that the state faces a revenue shortfall between $350 million and $550 million next budget year. This is a major embarrassment for Governor Jennifer Granholm, the second-term Democrat who shut down the state government last year until the Legislature approved Michigan's biggest tax hike in a generation. Her tax plan raised the state income tax rate to 4.35% from 3.9%, and increased the state's tax on gross business receipts by 22%. Ms. Granholm argued that these new taxes would raise some $1.3 billion in new revenue that could be "invested" in social spending and new businesses and lead to a Michigan renaissance.
Not quite. Six months later one-third of the expected revenues have vanished as the state's economy continues to struggle. Income tax collections are falling behind estimates, as are property tax receipts and those from the state's transaction tax on home sales.
Michigan is now in the 18th month of a state-wide recession, and the unemployment rate of 6.9% remains far above the national rate of 5%. Ms. Granholm blames the nationwide mortgage meltdown and higher energy prices for the job losses and disappearing revenues, but this Great Lakes state is in its own unique hole. Nearby Illinois (5.4% jobless rate) and even Ohio (5.6%) are doing better.
Not quite. Six months later one-third of the expected revenues have vanished as the state's economy continues to struggle. Income tax collections are falling behind estimates, as are property tax receipts and those from the state's transaction tax on home sales.
Michigan is now in the 18th month of a state-wide recession, and the unemployment rate of 6.9% remains far above the national rate of 5%. Ms. Granholm blames the nationwide mortgage meltdown and higher energy prices for the job losses and disappearing revenues, but this Great Lakes state is in its own unique hole. Nearby Illinois (5.4% jobless rate) and even Ohio (5.6%) are doing better.
Oh, but the mavens in Sacramento won't raise your taxes! They'll just raise taxes on the rich (said with a snarl)! Unfortunately, the definition of "the rich" is pretty hard to pin down, so it will probably end up including you. Also, most of "the rich" are the ones generating jobs in this economy. That's how they got rich in the first place. Raising their taxes will certainly have an effect on the unemployment rate.
Winston Churchill said, "We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Sounds about right to me.
Good god and little politicians, man, this is SACRAMENTO that you are talking about. After all, it is about what FEELS right.