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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    When it takes a miracle to save a billion dollars you know it's time for a change


    By Nick, Section News
    Posted on Mon Dec 03, 2007 at 07:35:18 AM EST
    Tags: (all tags)

    There's a propensity these days to throw out the bathwater, baby and all.  With everything that's happened, not happened and happened in the wee hours of the morning in Lansing these last few months it's tough to blame anyone for rushing to that basin of fetid liquid, grabbing it and giving it the old heave hoe.  There's plenty that needs to get tossed, and yesterday.  

    Michigan's economy is in a shambles.  That's just the cold hard truth of the matter.  We read reports every single morning about job losses, growing unemployment lines and skyrocketing foreclosure rates.  Today the Ivory Tower even puts a number on that particular problem:

    The state faces an estimated loss of $125 million in property, sales and transfer tax revenues in 2008 because of increasing foreclosures. Financing for public schools could suffer.

    "With the decline in values, you'll start to see even more of a stretch on communities and schools," Wayne County Executive Robert Ficano said Friday. "In addition, you've got millages for parks and rec, the jail and community colleges."

    And it's reasonable to ask... a decline in revenues?  Didn't the Governor and every single Democrat in the Michigan legislature (along with a half dozen "Republican" Benedict Arnolds) just secure billions in new tax revenue?  And here the lefties thought that monster, record breaking Democrat tax hikes would solve all of our problems.

    They just ignored one measly little fact; when taxes go up employment goes down.  Which leads to another pesky detail; when jobs die tax revenue goes down.  And with Governor Granholm and Andy Dillon at the helm, decreasing revenue calls for tax hikes.  Anyone else noticing a vicious circle here?  It's easy to understand the rush to pull the stopper on the drain.  

    And this weekend's most recent tax debacle certainly doesn't earn Michigan's Democrat leadership any brownie points.  But the new "fix" is not entirely without a faint, silver lining.  A faint, silver lining around a really big, dark cloud.  

    The bad news, Michigan businesses are still facing about a $600 million Democrat tax hike.  This is on top of an $800 million income tax hike swiped directly from our paychecks.

    The good news, that silver lining, up until Saturday that $600 million tax hike was a $1.6 BILLION tax hike.  The State was set to take in $700 million and Michigan job makers were going to have to shell out nearly a billion dollars just to comply.  It was no wonder businesses were lining up begging for a lethal injection.  Death by immolation would have been so much more painful.  

    Read on...

    Still, with a lethal injection thousands of jobs are going to be just as dead.  The AP reports that a deal was finally struck but:

    Not before the business community faced two months of uncertainty in Michigan's already troubled economy.

    Not before some companies racked up attorney and accountant fees to comply with the 6 percent sales tax on services.

    Not before legislators seemed to spend as much time blaming each other for the tax as they did trying to craft a replacement.

    When the House sent a repeal-and-replace bill to the Senate late Wednesday and left town for three days, Republican Senate Majority Leader Mike Bishop called it the "lowest point yet." He later accused the Democratic-controlled House of ducking out of work while the Senate "rolled up its sleeves and worked until the job got done."

    And that's where that silver lining gets a little bit brighter... when you look back on where we were just a few short days ago.  Consider that Governor Granholm sent signals, in no uncertain terms, that she would simply refuse to sign anything short of a full replacement of any tax dollars lost in a tax repeal.

    Consider that the House actually yanked their negotiators in the middle of talks late last week, shocking and upsetting their own Democrat tax experts who, in their own words, thought a deal was possible.  Consider that then Andy Dillon passed a sham bill, intentionally failed to enroll it making reform legitimately and technically impossible and then adjourned the House, sending his members home for the weekend before heading out for celebratory cocktails at a Lansing hotspot.

    The Democrat "leadership" in Lansing was more than determined at that point that nothing should get done.  Only after the press and the public started calling the House to the mat for their shenanigans did Andy Dillon return to the bargaining table.  Begrudgingly, a full day too late, the House approved a GOP reform that saved businesses a billion dollars.  

    And that is, unquestionably, a victory for conservatives.  Should we have been in this position to begin with?  Absolutely not.  Do we have a half-dozen members in our own ranks who need to find a new line of work?  Absolutely.  But does all of that mean the Senate and House GOP should have declined the opportunity to fight tooth and nail to save taxpayers a billion dollars?  Certainly not.  

    There's some measure of practicality needed here.  Mistakes were made in the past.  Mistakes that will kill jobs.  Mistakes that should cost lawmakers their jobs.  If they had any honor at all seventy-some-odd Democrats and a half-dozen Republicans should be sprucing up their resumes right now.  But the question this past weekend was between saving taxpayers a billion dollars or not saving the taxpayers a billion dollars.  

    The Democrats staked out their position last Wednesday.  They weren't just OK with Michigan businesses shelling out ten-figures worth of extra cash, they wanted it and took legislative steps to make it happen.  Their behavior might not be surprising but it's just as lethal to job growth as it ever was.  And people are finally noticing.  Nolan Finley blogs in the Detroit News that Detroit Renaissance, a group of the best and brightest minds in the metro Detroit business community, has finally had enough:

    Long-term, Renaissance will advocate for specific reforms necessary for state government to operate more efficiently and ease the tax and regulatory burden on business.

    If this doesn't signal to Granholm and lawmakers that the most powerful individuals in Michigan are fed up with their sorry performance, nothing will.

    Asked what they'd do if their proposals get no response from Lansing, several Renaissance members said they'd wash their hands of the mess and start cultivating a gubernatorial candidate for the 2010 election who understands business and is capable of fixing Michigan.

    They'll also put their individual resources behind candidates across the ballot who commit to reform.

    Business leaders can't afford to sit idly by and watch their investments erode because elected officials are allowing the state to crumble.

    Michigan is desperate for a lot of things, but nothing more than leadership. The politicians demonstrated convincingly that they won't lead. So business must.

    The cynic in me wants to ask where Renaissance's conviction was eighteen months ago when they had the opportunity to support the sort of candidate they seem now to want so desperately.  But the realist in me welcomes them to the fray because those of us who care enough about Michigan to tell the truth about our problems can use all the help we can get.

    < Monday in the Sphere, December 3 | Fire Up the Wood Burning Stove and Get the Horse and Buggy Ready >


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    Display: Sort:
    Nice spin, Nick... (none / 0) (#1)
    by djtyg on Mon Dec 03, 2007 at 06:32:27 PM EST
    It's a victory for conservatives that a tax increase was passed by the GOP.

    If you say so, chief...

    Hello DGTYJ (none / 0) (#4)
    by Victor Laszlo on Tue Dec 04, 2007 at 06:24:55 AM EST
    Ah, I see DGTYJ has crawled out from under his rock.  Of course, DGTYJ had half a brain cell, he would realize that conservatives in the State Legislature didn't vote for a tax increase this past weekend.  Instead, the conservatives in the State Legislature voted to replace the dumbest tax ever enacted by Comrade Granholm, Andy "Double Dealing" Dillon, and their fellow neo-communist liberals in the State Legislature.  The services tax was so stupid, that even Granholm and Dillon were quoted by the Freep admitting that it was a lousy tax.  Thus, the conservatives in the State Legislature mitigated the dumbest tax increase with a replacement tax that precludes some of the harm that would have resulted from implementation of the services tax.

    Its fools like DGTYJ who would rather see the State of Michigan degenerate into a Soviet Socialist Republic where there are no private sector employers and everyone is either an employee or dependent of State Government.  In the foregoing socialist utopia, a select few who lie their way into office (like Comrade Granholm) would then be in a position to dispense punishments and rewards according to one's ideology.

    I see... (none / 0) (#5)
    by djtyg on Tue Dec 04, 2007 at 03:51:42 PM EST
    Victor can't even have an argument without using namecalling and partisan falsehoods.

    Waaaaahhhh!  The cons are picking on me!  Mommy!

    Big whoop.  Seriously, is that the best you got?  I can do better.  I'll hold off for now.

    The truth is they voted to increase the MBT so taxes will still be higher than they were on September 30th.  And according to the article below, it's expected to take in more money than the service tax did.  Have a nice day.

    http://www.mlive.com/newsflash/michigan/index.ssf?/base/business-14/119651334237350.xml&storylis t=newsmichigan&thispage=1

    ah, same out source... (none / 0) (#6)
    by John Galt on Wed Dec 05, 2007 at 08:14:10 AM EST
    Nice argument - increased revenues from one year to the next means a tax increase...

    Reagan and Bush's tax cuts increased the amount coming into the treasury.

    Which means, according to you, the GOP tax cuts were tax increases!

    I guess if this were MichiganLibel, we'd just ban you and erase your posts... Here, we let your stupidity shine for itself.  

    If a new tax brings in more revenue.... (none / 0) (#7)
    by djtyg on Wed Dec 05, 2007 at 05:30:00 PM EST
    It's an increase.  Of course by that logic you could tell Bush to increase taxes and call it a decrease...

    DGTYJ = Hypocrite (none / 0) (#9)
    by Victor Laszlo on Sat Dec 08, 2007 at 07:13:24 AM EST
    For DGTYJ to accuse any conservative of partisan falsehoods and name calling is like the pot calling the kettle black.

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