Thursday, December 21, 2006

Michigan's descent into the fiscal abyss

This article from the Detroit News discusses warnings from Michigan governor Granholm that the state could face a budget deficit of $1 billion dollars. Now with the Democrats controlling the state assembly for the first time in a long while, this key quote is of note:
The governor would not say if she was considering a tax increase to keep the
state afloat.
The last thing Michigan needs are tax increases in such dire economic circumstances. One of the reasons why Michigan has lagged all other states is due to its tax system. One of Grahnholm's proposals to exacerbate the Michigan economy was her proposal to replace the state's hated Single Business tax with a more onerous tax regime which is part gross receipts tax, part tax on assets, and part income tax.
The two biggest reasons that businesses are avoiding Michigan like the plague are high taxes and unions. Granholm's refusal to rule out tax increases and her coutnerproductive business tax proposals will make businesses even more leery of investing in the Great Lakes State, which will fuel the exodus of people out of the state in search for better prospects.
As a friend of mine said who still lives in Metro Detroit is, "Thanks to Jennifer Grahnolm's economic policies, the deserted roads make my commute to work that much easier."

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