State of Michigan Taxpayers Address
Michigan homeowners will soon receive their new property tax assessments. For most homeowners, the value of their home will have fallen, yet their summer and winter property tax bills for 2008 will actually increase due to the legal but unforeseen consequences of Proposal A.
Also, Michiganders will likely watch their per-capita real income fall for the fourth consecutive year while paying the 12% increase in the state income tax which passed this past October.
Michigan's small and mid-sized businesses will be paying the new 22% "surcharge" on the Michigan Business Tax passed by the legislature starting this past January 1st. Michigan's employers will be forced to pass this tax hike on to consumers in the form of higher prices or lay off employees in an effort to keep prices competitive.
Governor Granholm proposed in her State of the State last evening that these higher taxes would be used to pay for select tax breaks for some companies, specifically the "fifty fastest growing industries" as selected by government agencies. Granholm specifically mentioned tax cuts for the film industry, an aviation center in Houghton and some kind of pie factory in Saugatuck.
Governor Granholm’s new, centrally planned economy would include using taxpayer-backed, state employee pension funds to gamble on high-risk start-up company investments. This program is apparently in recognition that private investments in Michigan are unlikely due to our high taxes and regulatory structure. This new program is in addition to her 21st Century Jobs plan from two years ago that has actually created a few jobs; I think both of them are grant writer positions at public universities.
Worried? Don’t be. Granholm's central planning has a cure-all, sure-fire magic wand that will save Michigan's economy. Its called "diversifisustainalterntivegreenability" economics. The theory is that if our state's elected leaders say certain key buzzwords enough, the cumulative effect will be the creation of a new, alternative "buzzconomy" fueled by free-range granola and fossilized hippie remains that will supplant old notions of an "economy" based on calculated investment risks made for the purpose of turning actual profits.
Of course, this diversifisustainalterntivegreenability buzzconomy only works for government. The tricks of this buzzconomy employed by Lansing (things like borrowing against future tax revenues and restructuring bond payments) are not available to your family. Your increased taxes this year will have to be paid using the old form of currency - actual money. Your money.
Michigan Taxpayers Alliance