May 24, 2007
No, 9.1 percent is not Michigan’s unemployment rate --- yet.
9.1 percent – four and a half times the rate of inflation - is how much the governor and House Democrats want to increase state spending this year…with the help of a tax hike.
You might ask…“Hey, didn’t I read somewhere we were in the midst of a budget crisis? I thought they said they would only raise my taxes after cutting state spending?”
Well, following last Friday’s revenue estimating conference, state fiscal experts pegged current General Fund spending for fiscal year (FY 2007) at:
$8,804,300,000.00 (Source: House Fiscal Agency)
Governor Granholm’s budget for this year – mirrored in budget bills moving through the state House – calls for spending in the General Fund (FY 2008) of:
$9,610,900,000.00 (Source: Governor’s Executive Budget Recommendation for FY 2008)
Today, House Democrats are poised to vote on a plan to raise people’s income taxes, a move that would bring to Lansing next year:
$900,000,000.00 (Source: House Democratic Policy Documents)
Increased state spending: 9.1 percent (Source: HFA and Executive Budget Recommendation)
The current Consumer Price Index: 2.1 percent (Source: Consensus Revenue Estimating Conf.)
The Democrat’s proposed hike in the state income tax: 18 percent (Source: House Bill 4500)
The chances taxpayers are about to get a raw deal: 100 percent --- if House Democrats get their way.