Michigan

[Golden Rocket]

Probably leaning a little too much toward politics, but the Michigan legislature voted 57-52 early this morning to increase BOTH the income tax AND the sales tax. All of this because the governor was going to shut down the government.

In 2002 Tennessee shut down its government. The Republican governor and special interest legislators wanted a general state income tax, and only talk radio saved this from happening. Only the critical state services were spared the shut down.

During the two week hiatus, nothing really happened. Ordinary citizens began to realize just how worthless most of the state services really were. The income tax lobby finally caved in because many "needs" were rapidly being sucked up by the private sector.

It would have been interesting to see what would have happened had Michigan shut down. Appears the Republicans supported an increase from $120B to $130B, an 8% increase. Democrats had forged a $140B budget and accused the Republicans of "cutting" spending. With a shutdown, maybe Michigan people would have realized how worthless some of these state expenditures really are. Sova, you out there?

Sometimes I have a bad year when revenue is down, and expenditures run away with dollars. When this happens, I just simply have to cut back for awhile. Why cant' government do the same thing?

By the way folks, I am a Democrat. Conservative, yes, but a Democrat.

[JohnH]

Raising Taxes / Decreasing Base

Every time one of the Rust Belt states raises taxes on their dwindling taxpayer base, real estate promoters in the South add more housing to their planned developments. You'd think the politicians would get a clue...

[DaveO]

Shutting down state government

Is just a good start in my opinion.

[Anarchrist]

You'd think the politicians would get a clue...

The worst & dullest of society are attracted to government work and politics. So politicians will never get a clue about what works in real life.

Being a Michigan resident I was hoping for a shutdown but wasn't surprised that they reached a last minute deal. That seems to be the typical mode of operation - scream terror and make it all a big drama. Oh well, the Michigan recession grows.

[JohnH]

Bu they did shut down

Didn't I hear that some campers were kicked out of a state park around midnight as a part of shutting down "non-essential services"? Sounds to me like they started at the wrong end of the spectrum - shutting down Lansing & leaving the campgrounds open would have been more productive. Maybe even better for the economy...

[thomtax]

Franchise Tax

One of the favorites of our town council is the Franchise Tax. A few years ago they wanted more money. There was a loud complaint against the extra taxation on individuals. So some shrewd politico came up with this:

We should not be taxing the individuals. After all, they are doing their best. But all these big utility, telephone and cable companies come into our town and make a lot of money off our citizens. Let's just charge them for doing business in our town by charging them a franchise tax. And the lemmings - er, uh, I mean citizens of the town congratulated the council for such a novel approach and making the "big boys" pay.

The problem - in this state the company just adds the franchise tax to the bill and collects the full amount from the customer. Plus the tax was passed without the "taxed" public having a vote on the matter.

LT

[Golden Rocket]

Minnesota too

In my youth I witnessed the opening of a new industrial park in Madison, AL (close to Huntsville). Six new plants were being relocated to Alabama. Five of them were from the Minneapolis area, the other from Cleveland. Minnesota had become "tax happy" and drove their businesses out.

But that was 30 years ago. Minnesota is still aggressive, but has allowed other states to approach and surpass their rates. Another thing to consider, is there IS a difference in what you receive for what you pay. The Minneapolis area is one of the cleanest large cities I've ever seen. Roads and traffic move well (notwithstanding the 35W bridge collapse). Businesses are thriving. Compare this to Michigan, with the nation's highest unemployment rate, with undoubtedly the nation's dirtiest city and crumbling infrastructure everywhere. Recently, the SW quadrant of Michigan had shown signs of economic life, (Grand Rapids, Kalamazoo, etc.) but I think now even that area is suffering.

And the six plants moving to Alabama 30 years ago? Four of them moved to either Mexico or Asia, the other two went bankrupt.

[Anarchrist]

Didn't I hear that some campers were kicked out of a state park around midnight as a part of shutting down "non-essential services"? Sounds to me like they started at the wrong end of the spectrum - shutting down Lansing & leaving the campgrounds open would have been more productive. Maybe even better for the economy...

Yes, the state parks started closing Sunday. They always start at the wrong end. Which is why I'm surprised by Golden Rocket's original post about the shutdown in TN. Most shut downs leave the worthless things running and shut down aspects that will affect people. The news was filled with stories of the schools and mental hospitals that would close. They barricaded highway rest areas. Closed the state parks, as you already heard. Drawbridges were raised so traffic couldn't cross. DMV offices were closed and they were sending out the terror warnings that license renewals and such wouldn't be available. Unemployment offices (in a state with 14% unemployment) were closed. So they did everything possible to make sure people were inconvenienced and knew the state was shut down.

[JohnH]

Bureaucrats Always Know Who to Punish

Government types are pretty good at figuring out how to tick people off when they don't get their way. Here in NC, the voters defeated a local school bond a few years ago because the adminstration & school board were throwing away money left & right - they were so irresponsible you'd have thought they were US Senators & Congresspersons.

Sure enough, the day after the vote our school superintendent was on the radio railing about how "Your children are going to be packed in mobile units & oversized classrooms and we might need to add an extra two hours to the school day". He sounded like a little kindergartener who was lashing out at everyone in sight because somebody took his popsicle. Thankfully he was booted out, although we're still fighting the same type of battle with his successor. It's hard to get these bozos to think straight, especially when they can trot out the excuse that "It's for the children..."