Michigan looking at another $685 million in taxes
From Sunshine Review
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August 13, 2009 Following a October 1, 2008 estimate that the Michigan budget would have an estimated $1.6 billion deficit, Gov. Jennifer Granholm proposed $685 million tax hike, including taxes of water bottles, cigarettes, sporting events and beer.[1][2]
[edit] Budget issues
Granholm had proposed deep cuts in the budget such as 1,500 state employee layoffs, prisons closings, closing of a mental health facility and elimination of a state department. Now her plan is to hike taxes to bring in an additional $685 million from taxes on water bottles, cigarettes, sporting events, beer and other items.
Granholm is choosing to forgo negotiation in public. The budget will be written behind closed doors.
In July, tax collections were down over 19% from last year, while income tax collections are down nearly 20 percent this year, largely because the high tax structure causes business to shut down or lay off employees. With the state’s high unemployment rate, there is less income being generated in the state. Now, more than ever, Michigan taxpayers need to get back in the driver’s seat and hold their elected official accountable for the tax increases used to fund state programs.
[edit] External links
- FY 2010 budget
- Michigan Governor's office website
- History of Michigan's budget deficit
- FAQs about the Michigan budget
[edit] References
- ↑ "Michigan's budget deficit gets deeper," The Detroit News, April 14, 2009
- ↑ "Gov. Jennifer Granholm proposes budget with tax hikes, including extension of sales tax to sports, entertainment tickets," mlive.com, August 13, 2009
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