Pete Hoekstra supports a tax increase

We all know Andy Dillon supports higher taxes, but I'm a little disappointed in Hoekstra. He was until this my second choice for governor, and one where I wouldn't have to hold my nose in supporting outside of that one bailout vote that left me a bit sour. Well, now the bailout vote isn't the only thing that has me sour.

From the Detroit News

Beverly Hills -- Two early poll leaders in the Michigan governor's race -- Democrat Andy Dillon and Republican Pete Hoekstra -- found more common ground than differences Friday in a rare joint appearance at Detroit Country Day School.
They agreed term limits block political relationships in Lansing; it takes too long for businesses to get regulatory permits; right-to-work legislation would be too divisive; and the state needs to retool its tax system, including extending the sales tax to services.

From The Detroit News: http://www.detnews.com/article/20100320/POLITICS02/3200331/1409/rss36#ixzz0ik1tJarD

Extending the sales tax to services is a tax increase. We pay more for goods. More money goes to government which has proven itself unable to live within its means. Just as Pete Hoekstra voted to bailout the banks which fubared, he now wants to bail out government by taxing others like a democrat.

There's more:

Hoekstra said Michigan has a "crazy" business climate that drives investors to other states. He called for elimination of the Michigan Business Tax, as well as the levies businesses pay on equipment, and lowering the state income tax and the property tax on second homes to spur more out-of-state people to buy here. He favors initially ratcheting down the sales tax and extending it to services, but then going to voters to ask for a sales tax boost to offset reductions in other taxes

It's easy to be against the MBT. It was a poorly thought out rush job of a replacement to the bad Single Business Tax. (Thanks to Joe Hune for opposing that piece of crap). I oppose that too, but we have a spending problem more than a revenue problem, and punishing the types of businesses that may be growing is a piss poor way to spur growth. I'm fairly certain though that Pete Hoekstra's plan is a duplicate of self proclaimed "Business Leaders for Michigan" and Granholm's plan of a measly 1/2 cent cut on sales tax only to tax services at that race. It's a tax increase. Period, and needs to be opposed 100%. It was wrong when Granholm wanted a two penny tax. It's worse with BLFM's 5.5 cent per dollar tax increase.

It was fiscal liberalism from Republicans that cost us both the state house and congress in 2006. We don't need more of the same. Pete Hoekstra unfortunately seems to have caught beltwayitis and is bringing it here. No thanks Pete, and I expected better from you.

Joe Schwarz and Andy Dillon are in

It's an interesting day today. We had the oral arguments of McDonald v Chicago. If I can find audio of that case, I'll be listening to it. If not, I'll settle for the transcript. I want to at least see the text before I comment on the case and the commentators of the case. I won't speculate on the decision.

In gubernatorial news, Andy Dillon is in. If you think Lansing and the house majority is doing a great job right now, vote for Andy. I'm not voting for him. He is better than Joe Schwarz though, but who isn't?

Speaking of the Second Amendment and other issues, Joe Schwarz just won't go away. He's back, and this time running as an independent. He has the exploratory committee out at least. From Politico.

Former Rep. Joe Schwarz (R-Mich.) said Tuesday that he’s forming an exploratory committee to help raise funds and begin building a structure and staff for an independent campaign for governor.

“We’re forming an exploratory committee as soon as possible – my attorney is working on it right now,” Schwarz told POLITICO, adding that it should be finalized within 48 hours. “We’re trying to take this in a logical sequence because this simply hasn’t been done before in Michigan.”

Read more: http://www.politico.com/news/stories/0310/33771.html#ixzz0h3OqGtdz

Expect to hear a lot about this. The media loves this guy. The Lansing elite loves this guy. They refer to him as a "statesman." I refer to him as an arrogant politician who thinks his you know what doesn't stink. The public didn't care for him, and that was shown in the 2006 primary when he was shown the door. It was also shown in 2002 gubernatorial race where he got 20 some odd percent in the primary. I could have done that.

If you have doubts about Joe's leanings, Schwarz took money from the democrats top guy. Jon Stryker, the radical rich leftist. He also took money from well known democrats James Byrum (of the same family), Dennis Hertel (former house leader), Phil Power (UM Trustee, leader of Center for Michigan, and former Argus owner), Lana Pollack (ex-State Senator), and Rick Wiener (Granholm's Chief of Staff) was listed as well.

As Schwarz no longer is a RINO (for supporting leftist democrats like Mark Schauer) and is running as a arrogant version of John Anderson independent, we need to remember that this guy isn't an outsider who wants to clean up the mess. He's the insider of insiders, and is part of that close knit group of people that thinks he knows what's best for you. He's with the Center for Michigan crowd, the con-con wonks, the commissions, the cocktail parties, etc.

Schwarz is one of the people behind this con-con push. From 2006. That includes eliminating safeguards against government power. The "Citizens for Michigan" proposals are listed here in my comments on the con-con

That doesn't get to Schwarz's 2002 campaign stances where he was against the 2nd Amendment, calling the concealed carry supporters "bubba who straps on a 9mm". He voted against it. At another point, he said he didn't have a problem with "Calhoun County" residents with guns, but had a problem with "Wayne County" people with guns. I didn't hear that one first hand, but heard that he made that comment from at least three sources. The bubba quote was on several occasions. Schwarz also called pro-lifers zealots and ripped them in a debate against Posthumus over in Rochester in 2002. I was there. He also at the same even campaigned on increasing property taxes.


We've had budget problems for 10 years. Schwarz was there for part of that and could have helped stop this without tax increases if he chose to do so. He didn't.

The good thing about this is that Schwarz will take more votes from democrats than republicans. He's a more arrogant version of John Anderson. Which republicans will he take votes from outside of Calhoun County? Tax hawks? He supports increases. Gun Owners? They despise him. Pro-lifers? I don't think so? Spending cuts? Nope. Club for Growth went after him for a reason. National defense? Not an issue in a gubernatorial race.

We need change in Michigan. Change does not mean electing an arrogant insider who will try and pass himself off as an outsider. Joe Schwarz is part of the problem. We don't need Lansing elites running the show. I'd frankly prefer more Granholm to this guy, and there's no way I'd give her a 3rd term.

John Cherry drops out of the race

I'm shocked at this. I thought Cherry was much stronger than his numbers suggested. He's strongly organized, extremely friendly to labor, neutralizes the gun issue, and good one on one with people (which I know from experience at one of his gun events). If he hit the doors and met the people, he'd have a decent shot to win.  Granholm was an albatross, but Cherry could have worked to shake that later.

This opens things up. The two things I have heard is that Andy Dillon and Virg Bernero are jumping in. I think Dillon can be attacked the same way as Cherry. Dillon shepherded through the Granholm tax increase in 2007. Dillon was Speaker of the House during the whole deficit spending and tax increases. He also has left flank problems.

Virg Bernero's interesting. He's the Lansing mayor and always seems to be running for some office. Those VIRG signs are everywhere. He was a former state rep (Barb Byrum's seat) and state senator (Whitmer's seat) who left the state senate to be mayor. Lansing is in better shape than some other Michigan larger cities, but how many people who aren't political junkies or live in the area know about Lansing. There's the capitol. There's Cooley. There's LCC. There's the Lugnuts. There's a few other local favorite places, but it's still largely a GM city with some MSU influence on the east side. Nothing wrong with that, but it doesn't get its mayor the same name recognition that a mayor of Detroit or Oakland County Executive gets. One thing is for certain is that VIRG won't be getting support from pro-lifers and gun owners based on his state senate record. As a state senator, the biggest thing he is known for as a state senator is the "pop tax". There's a dealbreaker right there. I don't underestimate Bernero though. He'll work hard and is used to tough races in primaries.

I think two darkhorses to watch for with the dems are Mark Hackel and Bob Ficano. Those two I think would be the best chance for the dems to win in 2010. They aren't tied to Lansing or state government.

Dillon's Sales Tax alternative - UNACCEPTABLE

House Speaker Andy Dillon and the democrats have a new CYA attempt out. It's slightly better than the current "government picking winners and losers" services tax, but a choice between one or the other is like the "head or gut" scene from the movie "The Last Boy Scout." Do you want to be punched in the head or the gut?

From the Detroit News

EAST LANSING -- House Speaker Andy Dillon set off a firestorm of reaction Friday when he said he is considering the possibility of asking voters, as early as Jan. 15, to increase the state's 6 percent sales tax to 7 percent -- a $1.4 billion annual tax boost -- in exchange for repealing some of the controversial service sales taxes approved by the Legislature in the middle of the night Monday.

"We're not foreclosed from putting it on the presidential primary (ballot) and going for 7 percent," said the Redford Township Democrat. "It could happen, I think."

Republican legislative leaders, a leading anti-tax citizens group, and some influential business groups said they couldn't support a higher sales tax rate, but agreed this week's legislative action to expand the sales tax on services would amount to a job killer when it takes effect on Dec. 1

If I want something on the ballot regarding the new service taxes, it's for a repeal without a catch. If someone's asking me "head or gut", I'm going to respond with a right hook of my own.

Granholm got her wish, and Michigan gets screwed

Double tax increases. I expected there was going to be one tax increase. I did not expect two. This economy is in the dumps, and that's the solution? Because government mismanages our money and messed up the state budget, going back from the Rick Johnson and Ken Sikkema led years to today's crew, we get this? Thanks guys. Because you all f'ed things up, we have to pay for it. Bipartisanship isn't always a good thing. Oftentimes it is when both parties get together to screw us over. It's when almost all the democrats are united, and a handful of republicans end up joining them.

While I was sleeping, the senate passed both tax increases, the sales tax increase, as well as the income tax increase. The sales tax increase passed 19-19 with Lt Gov. John Cherry being the tiebreaker. All Democrats supported the tax increase outside of Glenn Anderson who is in a swing district. All Republicans opposed it outside of Ron Jelinek, Valde Garcia, and Wayne Kuipers.

The Income Tax passed the senate. All Democrats voted for that except Anderson and Dennis Olshove. All Republicans voted against except Jelinek, Gerald Van Woerkom, Patricia Birkolz, and Tom George.

The House passed the Income Tax increase. All Democrats voted yes except Martin Griffin, Michael Simpson, and Lisa Wojno. All Republicans voted no except Ed Gaffney and Chris Ward.

The House also passed the sales tax increase. No Republican voted for that, and all democrats supported that except Kate Ebli and Marc Corriveau.

I still don't have the roll call for the MESSA reforms.

As far as Chris Ward and Valde Garcia go. Chris doesn't have a bad history on tax votes. There were two things he wanted. No shutdown, and some reforms. We got MESSA, but that was it. I did not expect a two tax requirement for the deal. To Chris's credit, he voted against the IMO worse of the two taxes (sales), although nether one was acceptable to me. Chris waited to the last minute and the board was closed, so I suspect he got burned, but wanted to keep a promise. At least he wasn't the deciding vote, and no democrats got a free pass (Simpson and Griffin DID vote for the sales tax - and let's not forget that). I haven't talked to Chris today, and I'd like his side of the story when this is said and done. Do I agree with the deal? No I do not. Do I consider him a RINO? No. Valde's a nice guy. I can count on him when it comes to the social matters, but this is one vote too many for me on fiscal issues. On this sales tax, I'm real disapointed. He was the deciding vote.

Overall, I'm flat out disgusted at state government. I'd love to support recalls against all of the state reps like Dillon, but they are gone within a year anyway. Let's be patient and send them home then. Dillon can and should wait until August next year. Simpson and Griffin played games, but they did raise taxes, as did Corriveau and Ebli. Those four can get sent home in November. So can McDowell, Espinoza, Byrum, Kathleen Law, Spade and other democrats in tough swing districts that voted for the double tax increase. All the other democrats should get primaried in August, as well as November opposition. April 15th next year is a great time to announce the opposition campaign kickoffs. Tax day.

Granholm needs to get recalled. She's the biggest problem. We can not afford to wait three years before she drives every single productive worker and industry out of our state. Rumor is that she wants to be a senator or Supreme Court Justice after she's governor. How about Private Citizen away from the government trough for the first time in I don't know how many years. If Gray Davis can get recalled in California of all places, we can recall Granholm.

In the senate, there are some tough districts that should be targets. Mark Schauer voted for both tax increases. He's now running for Congress. If he loses his congressional race he stays in the state senate. He should be the first target in the senate for recall. He can lose two elections. His current job, as well as the other job he wants. Send him back to Battle Creek

Michael Prusi is in a democrat leaning district in the UP, but Bush won it. He voted for both tax increases. He should be targeted.

Jim Barcia is in a swing state senate district. He's be extremely tough to beat, but being part of this mess doesn't help. Same goes for Deb Cherry, John's sister. They're nice people, but they still voted for double tax increases.

However if I had to pick and choose only two targets for recall, I'd focus on Granholm and Mark Schauer. Schauer is bucking for a promotion, and Granholm is the biggest problem of all. We got three years of those two jokers, unless sometime is done fast. Let's get the petitions ready and send them home.

Fire Millen! Fire Schauer! Fire Granholm!

116 million in waste. Thanks Granholm!

How arrogant. You're DEMANDING a tax increase, and want to feed us this BS?

As the threat of a government shutdown looms, Chief Investigator Steve Wilson is asking some tough questions of about a $116 million construction project for the state police.

Steve Wilson story pt 1

Steve Wilson story pt 2

This isn't some simple MSP project. It's a 25 year lease with Democrat leader Joel Ferguson (MSU trustee and wannabe football coach). Fergie gives tons of money to the dems and gets a sweetheart deal here in the budget.

And they want us to pay or this with a major league debt? All I can say to this is three words. Go to hell.

More budget updates

The battle of attrition is still going on.

First, I got this in an email forwarded to me. An excerpt of the Political Diary in the Wall Street Journal.

GOP's Future at Stake in Michigan Fight

Michigan's Republican Party is in the midst of an internal skirmish over, of all issues, taxes. The infighting came to public light in recent weeks when certain establishment-oriented party insiders began complaining that the state party chairman, Saul Anuzis, was sounding a message that's "too" anti-tax.

The state now faces a $1.8 billion deficit and Mr. Anuzis sensibly wants that wiped out by cutting a bloated state budget, not tax hikes, but some Republicans in the legislature want to strike a deal with pro-tax Governor Jennifer Granholm. Mr. Anuzis' persistent proclamations against higher taxes have caused grumbling among party moderates, who complain he's "making it more difficult to work out a deal to resolve Michigan's nagging budget deficit," as the Detroit News recently reported. The moderates insist that it's inappropriate for a party chair to dictate the party's policy to elected officials.

Conservatives, for their part, can't fathom why Mr. Anuzis' behavior has come under attack in his own party. They fear it means liberal Republicans in Lansing are signaling their readiness to cut a budget deal with pro-tax Democrats at a time, peculiarly, when Democrats seem disposed to shoot themselves in the head on the budget. House Democratic Speaker Andy Dillon has become so frustrated with the refusal of Senate Republicans to negotiate on taxes that he just announced: "We are going to act alone." He wants to raise income and/or sales taxes in the state.

That budget solution would be an economic catastrophe for a state that already has among the nation's highest unemployment rates and highest number of mortgage foreclosures (despite having missed out on the housing boom that led to mortgage excesses in other parts of the country). Why Republicans would want their fingerprints on this economic suicide pact is a mystery to the conservative activists I interviewed in the state.

Democrats have been gaining electoral ground in this national battleground state in recent years, but today's tax fight could be a pivotal moment to define the differences between the two parties. Grover Norquist, president of Americans for Tax Reform, says that Mr. Anuzis is a "party chair worthy of cheering." And Mr. Anuzis isn't backing down. "We have to hold the line on no new taxes," he tells me. By giving voters a real choice between lower taxes and more spending, Mr. Anuzis is doing exactly the right thing to bring Republicans back to majority status in Michigan.

-- Stephen Moore

So far so good, the GOP has stayed strong. What's right for the state is also right for our party in this case. No more taxes! Re-establish our fiscal conservative bonafides in our brand image, and move away from the big spending jokers who killed us in 2004 statewide, and 2006 on a state and national level.


Also, Right Michigan reports that Andy Dillon took some time off after the lockdown ended to go golfing at Oak Pointe with some lobbyists. I wish I knew about it and was able to get up there to welcome him with my camera. "Out golfing with lobbyists while Michigan burns." BTW - Who let that joker into Livingston County, anyway?

Few changes. The dems still aren't united on this tax increase. Mike Simpson of Jackson County voted for the tax before not voting for it. The Matt Millen of governors is still running her mouth pushing for a tax increase. Andy Dillon is still the Marty Morningwig to Granholm's Millen.

And in other news, our AG Mike Cox resigned as co-chair from John McCain's campaign. Interesting development this close to our Mackinac Conference.

Media story on tax battle

Needless to say, the big story right now is the tax battles in the democrat controlled house. Nick and Right Michigan are doing a top job covering this, and I recommend that site for the best updates

First, the Free Press report on this:

LANSING -- As midnight struck, a House vote to raise the state income tax 18% was still in limbo early today, nearly 10 hours after voting began.

The voting board, which never recorded an official tally, was wiped clean and lawmakers resumed efforts to reach the needed 56 votes, quickly reaching the 43 votes they had before midnight.

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Majority Democrats said they were planning what could be a long weekend waiting for a handful of Republicans to join them in supporting increasing the income tax to 4.6%

Democrats had hoped Friday would be a day of decisive action to resolve the budget crisis and avoid an Oct. 1 partial shutdown of state government. It remained unclear whether the marathon session would solve the problem.

House Speaker Andy Dillon said he hoped for a bipartisan agreement -- by Sunday. Without Republican votes for a tax increase -- there had been none all day -- it would be a harder sell in the GOP-controlled Senate, said Dillon, D-Redford Township.

In a speech earlier on the House floor, Dillon implored Republicans to join the voting for a tax increase of up to $1 billion or more, even though his party has enough votes to pass the tax hike without its GOP brethren.

But Republicans held out, saying the Legislature had done little to curb spending, which Democrats promised to do. Sort of.

There's the key in bold. Dillon has enough votes in his party to get that passed. Yet, he's playing hardball because not only does he demand a tax increase. He demands that the democrats in tough districts get get out of jail free cards so they don't have to vote against their district. This isn't just about taxes. It about the democrats CYA effort. They want to cover their butts.

And what had been months of partisan wrangling, posturing and even name-calling over how to avert a $1.75-billion deficit was reaching a pressure-cooked conclusion, for better or worse.

The deadlock revolved around a handful of Republicans whom Democrats hoped to pick off for a vote to increase the income tax from its current 3.9%.

Rep. Dick Ball, R-Owosso, said that what seems fair to Democrats seems like political suicide to Republicans.

"We can't let Republican vulnerables vote yes and walk the plank," he said, "while Democratic vulnerables are protected."

Referring to the standoff, Ball added, "as my grandmother used to say, we have a mell of a hess."

This isn't Leon Drolet or Jack Hoogendyk saying this. This is Dick Ball. When you have Dick Ball, possibly the most fiscally liberal Republican in the house saying that, then there is a major league problem. It sounds like that these hardball tactics by Dillon and Granholm are hurting chances of getting a republican on board. Ball is probably their top target, as Drolet and the Michigan Tax Alliance are also closely watching their vote.

Now as for Dillon using the Senate as an excuse, that's bullshit, and I don't use that word often on this blog. Do you really think that a budget bill that passes the house will not be altered in some way in the senate - or vice versa? When that happens, the bill goes to a conference committee before going to another vote in the house/senate. The state house also has much more of a democrat majority than the state senate has a republican majority.

Now, the Detroit News

Nerves frayed, tempers flared and words were more heated Saturday as Republicans and Democrats in the state House -- which has met almost continually since Friday morning -- struggled unsuccessfully to find common ground that will balance the state budget and avoid a government shutdown Oct. 1.

They are trying to resolve a $1.75-billion hole in next year's budget that Democrats say requires a tax hike. Republicans, demanding budget cuts and government spending reforms, continued to oppose it.

(snip)

Dillon could marshal an all-Democrat favorable vote -- they control the chamber 58-52 -- but he wants it to be a bipartisan proposal involving at least 10 Republicans. Furthermore, several Democrats are in politically dicey districts and could lose reelection next year if voters are angered by a tax cut. Fifty-six votes are needed to raise the income tax.

I think the News means tax increase, but the point is clear. Again, this is a CYA effort for a get out of jail free cards for democrats who want to raise our taxes against the wishes of we the people.

It's time for the GOP house to continue to hold the line against these political games by Andy Dillon, and to make Dillon use his people in order to raise taxes. I don't want to see a bi-partisan tax increase. If that happens, it's time for a bi-partisan recall effort, including tax increasing republicans. The recall wouldn't just be for increasing taxes, but for bailing out the democrats.

No changes on taxes, dems can't unite their caucus

The late session called by Dillon has no changes.

Still no changes on the taxes. There are still 14 holdouts on the democrats. No Republicans have voted for tax increases (But Gaffney and Ball still need your calls ASAP).

Apparently, the dems are all mad that Republicans aren't supporting the tax increase, even though the dems control the house. Dillon and company not only want the tax increase, but they don't want one sided partisan heat from a democrat tax increase. They want to give "get out of jail cards" to the democrats in tough districts (like McDowell, Simpson, Griffin, Byrum, and Corriveau) for raising our taxes.

There are enough democrat votes to pass this without a single republican vote, so stop bitching about the republicans and look at your own caucus that you can't unite. Some Republicans have said they would support a tax increase as long as there were reforms in things like MESSA or Right to Work. (That's still not good enough for me) That's the probable price unless you want to forget the get out of jail free cards you want so badly.

So far, Andy Dillon ain't looking so good. Time for him to stop following the lead of the Matt Millen of governors, and to come up with plan C.

Democrats - Tax utilities

Unfortunately, Andy Dillon is drinking some of the same kool-aid that Jennifer "Matt Millen of Governors" Granholm is drinking

House Speaker Andy Dillon's plan to help the state's budget crisis includes a tax on utilities, which could add roughly $500 million a year in revenue.

Dillon, a Redford Democrat in his first year running the state House, discussed the budget situation with reporters Thursday at the state Capitol. His plan, which is still developing, will be added to the mix of other proposals already pitched by Democratic Gov. Jennifer Granholm and Republican lawmakers.

Dillon said more details of the House plan would be available next week. He said a 2008 ballot proposal for a graduated income tax is among the possible budget solutions, although that may not address this year's or next year's problems.

Do democrats hate this state so much that they want to drive everyone out with the taxes and regulations? Here's a starting point for cuts - Dan Mulhern and his secretary - former congressional candidate Nancy Skinner.