Excerpts from a post today on Mish’s Global Economic Trend Analysis. Our children will look back at our time, at our childish mis-management of a great nation, and wonder how these things happened. What will we tell them?
It need not be like this.
Governor Granholm’s Four Pronged Platform To Make Michigan Pop:
- Make kindergarten mandatory at taxpayer expense
- Require teenagers to stay in school until age 18
- Hire 500 educators to train 3,000 nurses at taxpayer expense
- Turn criminals loose on the street earlier
Michigan Business Tax Recap:
- Michigan passed $600 million in business tax relief along with a business tax overhaul.
- This in theory created 111,000 winners and 34,000 losers.
- This also created a $600 million budget shortfall.
- To make up for the shortfall Michigan passed one of the most convoluted service taxes in history.
- Everybody hated the service tax bill including those who passed it, yet the governor signed it anyway.
- It was not repealed until after it went into effect.
- A mechanism is now being put into place to return any taxes collected.
- The net effect was yet another $600 million budget shortfall.
- To make up the shortfall, a 21.99% surcharge on the new Michigan Business Tax was put into effect.
- The surcharge lasts until 2017. Democrats and Republicans alike voted for this compromise.
- A revised winners and losers list is not yet available that I could find.
Past posts about this long drama
- The post-WWII geopolitical regime is dying: Chapter Two
- Good news: The Singularity is coming (again)