Michigan Government Lobbies Itself To Raise Taxes

Granholm urged to raise taxes to balance budget

A newly formed coalition of education, labor and social service agencies calling itself A Better Future for Michigan said this morning the state should reform its tax structure and raise nearly $3 billion a year in new revenue rather than relying on spending cuts to balance the budget.

Basically, government workers and beneficiaries of government largess are calling on the government to raise taxes to give them more money rather than cut excess spending that they perform and benefit from? This is supposedly news?

And such great ideas they have too:

It called on Gov. Jennifer Granholm and the Legislature to:

• Close tax loopholes for business to raise $600 million.

• Impose sales tax on what the group's leaders called "luxury and nonessential" services (like entertainment, recreation, landscaping and spa treatments), raising $1.65 billion.

• Reinstate inheritance taxes to raise $100 million.

• And seek voter approval for a graduated income tax that would raise about $600 million a year in new revenue.

The graduated income tax would have a top rate of 6.9% for high wage earners, with others paying the current rate of 4.35%, and lower income earners paying 3.9%.

What could possibly go wrong? More business killing taxes, taxing "luxuries" like entertainment and recreation that employ lots of Michiganians (how about that Pure Michigan thing? I though recreation and tourism in Michigan is essential to our economy?), adding an inheritance tax on top of the federal one to scare off rich folks from living (and spending) here, and raising taxes on the "rich" which is of course anyone making more than them. Must be nice to think you can raise taxes with no ill-effects.

Raising taxes is the Michigan Democrat's answer to everything, even in the midst of our one-state depression. Its the wrong answer, but its the only one they've got.