Sunday, September 30, 2007

Michigan budget deal hasn't happened yet.

But Right Michigan seems sadly pessimistic that a deal is going to be reached that will involve raising our taxes.

So far both the Detroit News and Free Press are stating that a deal is not yet been reached so there's still a possibility of a shutdown, and the Detroit News reports that the proposed 6% sales tax extensions to sales tax to services for the "rich" such as dry cleaning, lawn maintenance, ski lifts, tanning booths and dating, consulting, landscaping and janitorial and payroll services.

Of course a sales tax on these industries will likely hurt them right when keeping business going is vital for this economy. The addition of taxing of ski lifts is likewise ridiculous, especially when Michigan is trying to draw tourists here for recreation, hitting them with an additional 6% may drive them farther away to where there's even better skiing. Nice idea indeed.

Upping the income tax when in this economy people need every dollar they can will likewise hurt the state's economy and its people.

Increasing taxes in a recessionary economy is just plain economically wrong

Apparently, it will only take a couple Republicans to be swayed for this to take place. Hopefully they'll show some backbone and demand real structural changes to reduce spending and balance the budget that way rather than further taxing the people of Michigan.

The Republicans have a huge PR opportunity here to portray themselves as defenders of the people from the Democrats insatiable appetitefor tax increases and even more government spending.

Let's hope they don't squander this opportunity and cave-in to the Democrats tax hunger.

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