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The people of Michigan explain why America faces so many serious problems

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  • It was not repealed until after it went into effect.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.

Michigan’s foolishness exceeds that of its fellow States, but it is a close contest.  Note Mish’s comments on California and Ohio.  Stay tuned for similar news from Florida.

Past posts about this long drama

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