There are three plans out. House Republicans plan (cuts), Senate Republicans (which passed and balanced the budget without raising taxes), and Granholm Democrats. Granholm was the last to announce a plan and it is the typical democrat plan. More taxes. Even tax raising Andy Dillon who saved her in 07 so far publicly opposed the plan. I wonder if Dillon is planning a gubernatorial run or something.....
From the AP
"The governor should know that showboating a proposal that has no chance of passing is not a way to solve the state's fiscal crisis," Dillon said in a statement. "All parties need to put theatrics and demands aside and get back to the hard work of negotiating a budget solution."Personally, I think that's just good cop Dillon and bad cop Granholm. Granholm probably wanted to push the big tax increases hard at first and then cave in on a smaller increase. This is a typical lawyer contract/settlement negotiation ploy. Go for the farm first, bluster, and back off. This is the right place for that technique, since neither side wants to walk away from a budget negotiation.
A spokesman for Republican Senate Majority Leader Mike Bishop of Rochester said the governor making her revenue plan public helps "move the ball forward" on negotiations, but added he doubts some of her proposals will get a warm welcome.
"A half-billion dollars in new revenues is certainly not the course chartered by Senate Republicans," Matt Marsden said.
Granholm's budget does have some cuts, but not enough. The only two good things are that she supports eliminating the MBT surcharge over three years, and wants to allow bars to stay open past 2am for a fee (I won't be there after 2, but I support that option). That positive is negated in spades by this negative.
To balance next year's budget, she'd raise $546 million in tax revenue by slicing 12 percent from some business tax breaks — including a popular film credit — and hike the cigarette tax rate from $2 a pack to $2.25 while doubling taxes on other tobacco products.
She wants to place a 1-cent tax on each bottle of water sold in Michigan, lower a tax credit for the working poor, increase liquor license fees, and expand the 6 percent sales tax to service contracts, vending machine sales and live entertainment, including sporting events.
Note that the Detroit News said it was 1 PERCENT tax on bottled water.
I'll sign on board to some of the credit elimination that picks winners over losers (and make it just a tax cut), but I am damn well against these.
1cent tax on bottled water. There goes some jobs. I drink tap water, but I'm still against this crap on principle. What's next? Pop? Carbs? Booze? Greens? Meat?
Lower tax credit for working poor? How about cutting their taxes so they aren't as poor?
Services tax? Screw you. That affects me directly. Guess what? Costs past down to consumers. I'll just write it up as the Granholm Services tax required by law.
Entertainment and sporting events - There's Michigan's culture taxed. That Bob Seger, Kid Rock, Ted Nugent, or Motown concert is costing a lot more money now. So are the MSU and Lions games. Let's bankrupt this like manufacturing.
Vending machines. Those aren't cheap to begin with. Let's put them out of business. She also wants tax increases for 2010-2011 as well.
Another $0.25 tax increase to a pack of smokes. Double the smokeless tobacco/cigar tax. Where's the money coming from when smokers quit.
Liquor license fees - The restaurant industry is already struggling. That's not what they need.
Freeze in income tax deductions - Basically, an income tax increase. If we pay more, it's an increase.
This Granholm incompetence and multiple tax/fee increases over her time in office has destroyed this state. It will take some good sound leadership to overcome this Matt Millenesque disaster.
Like the sign at the tea party said. "Democrats destroyed Detroit." They are now in the process of destroying Michigan, and want to increase the same policies that are destroying this state and think it will lead to another result. That's insanity.
This Granholm budget must be stopped. NO new taxes.