“Human beings are born with different capacities. If they are free, they are not equal. And if they are equal, they are not free.”
― Aleksandr Solzhenitsyn

Saturday, March 10, 2007

Tuppence here, a death tax there

...pretty soon you're talking real money.

Governor Granholm is holding town meetings convince us that we need to raise taxes. She claims that:
Since taking office in 2003, Governor Granholm has cut nearly $3 billion in state spending to resolve more than $4 billion in budget shortfalls - more than any other governor in the state's history. To balance the fiscal year 2007 and 2008 budgets, the governor has closed an additional $2 billion funding gap. She once again balanced the budget using a responsible mix of spending cuts, tax restructuring, and government reform.
If you look at this (page 15 as numbered, page 23 as reported by Adobe) you'll see Adjusted Gross Appropriations for fiscal 2007-2008 vs. fiscal 2006-2007 are up by $928,000,000. The only year Adjusted Gross Appropriations declined since at least 1999 was fiscal 2003-2004, when it dropped by $200,000. Chart here.

We may have a budget shortfall, but it includes almost a billion dollars in increased appropriations for the upcoming fiscal year.

H/T The Lunchbucket Conservative


The Wall Street Journal had this to say:
MoveOnOutofMichigan.org
High taxes lead businesses to flee the Wolverine State.
Comerica Inc. was founded in 1849 in Detroit and the Detroit Tigers play in Comerica Park, but this week the bank holding company announced it is moving its headquarters to Dallas--where, it said, the bigger growth opportunities are. Consider it one more vote of confidence in the state the national expansion forgot, and especially in Michigan Governor Jennifer Granholm's economic agenda.

Re-elected last year, Ms. Granholm recently rewarded the voters by announcing some $1 billion in new fees and tax increases. The plan would charge Michigan residents higher levies for almost every activity inside the state with a moving part. She would tax trucking, shopping, smoking, hunting, fishing, drinking beer and liquor, using a cell phone and, yes, even dying.

Her plan does complete the phase-out of the state's hated "single business tax," which the Tax Foundation has called one of the most anti-growth business taxes in the nation. She should have stopped right there. Instead the Governor wants to create a new corporate income tax as well as a new 2% excise tax on upwards of 100 business services. The net effect would be to raise Michigan's overall business tax burden. She'd also impose a 5% death tax on estates valued at more than $2 million--which is a sure way to encourage even more Michigan retirees to relocate to Florida.
Read it all at the Wall Street Journal link above.

H/T Republican Michigander


Meanwhile, our legislature is moving to retroactively eliminate protections for bio-tech and pharmaceutical companies, the kinds of businesses we're told are our future.

For alternatives to the Governor's plans see How To Replace the SBT With Nothing

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