Hmmmmm, Another Nail in our Coffin

[Scar My Machine]

As if Michigan wasn't hurting enough, our newly elected Republican Governor is looking to put another nail in the coffin.

Rick Snyder, the newly elected Republican governor of Michigan, had promised to make big changes to state government on the campaign trail. When he released his first budget on Thursday, Mr. Snyder did just that by proposing huge spending cuts and lower business taxes.

Mr. Snyder, a newcomer to politics who ran on his business expertise as the former head of Gateway Inc., outlined his budget proposals before legislators at the state capitol. Mr. Snyder said that he hoped to address the state’s longstanding financial problems through “shared sacrifice.”

“The days of kicking the can down the road are over,” Mr. Snyder said.

Republicans control both chambers of the state legislature, but Mr. Snyder was still likely to face questions over the budget because the changes were so sweeping.

Like many states around the country, Michigan is facing a huge budget deficit, $1.4 billion in this case. Mr. Snyder’s budget would make $1.2 billion in cuts to schools, universities, local governments and other areas while asking public employees for $180 million in concessions. Mr. Snyder said that he would set an example by reducing his salary this year to $1.

Mr. Snyder’s plan also calls for big changes to the state’s tax system. He would eliminate the current business tax in favor of a flat 6 percent corporate income tax, resulting in $1.8 billion in tax cuts for businesses. To pay for those changes, he would eliminate many personal income tax credits and require pensions to be taxed.

“I’m proud of what’s been put together here,” Mr. Snyder said. “It is a package put together for Michigan’s future. We’re not looking at the past anymore. We’re looking to the future.”

Democrats quickly criticized the budget’s spending cuts and corporate tax breaks. They said that Mr. Snyder was balancing the budget on the backs of the state’s children, working families and seniors.

“Governor Snyder’s idea of shared sacrifice seems to mean that working families will do most of the sacrificing while companies continue to reap the rewards,” said Gretchen Whitmer, the Democratic senate leader.

And the republican party once again will see to it that the burden will rest on the shoulders of those that can least afford it.

Good work there Snyder.

[phee]

As if Michigan wasn't hurting enough, our newly elected Republican Governor is looking to put another nail in the coffin.

And the republican party once again will see to it that the burden will rest on the shoulders of those that can least afford it.

Good work there Snyder.

Yep

[taysteewonderbunny]

And HERE is where we do agree, SMM.

[TitsMcGee]

I don't see any other of our "wonderful" state elected officials taking a pay cut.

[Destroit]

Soooo wait, lemme see if I have this. He cutting business tax. How could that EVER be construed as a negative thing? I think I missed something. Cutting business tax helps all classes, rich and poor. Rich people own the business and the workers collect the checks. Lower business tax means MORE businesses coming to Michigan, not less, and therefore more lower-class citizens being employed.

Did I miss something...? Like I said, don't understand how any sound logic could construe tax cuts of any kind as negative. Now ANY increase in taxes? That would be stupid, especially taxing the upper class because the trickle down effect occurs. When the upper class get taxed they leave state (sometimes country) and take their both their businesses and checkbooks with them.

Soooo wait, lemme see if I have this. He cutting business tax. How could that EVER be construed as a negative thing? I think I missed something. Cutting business tax helps all classes, rich and poor. Rich people own the business and the workers collect the checks. Lower business tax means MORE businesses coming to Michigan, not less, and therefore more lower-class citizens being employed.

Did I miss something...? Like I said, don't understand how any sound logic could construe tax cuts of any kind as negative. Now ANY increase in taxes? That would be stupid, especially taxing the upper class because the trickle down effect occurs. When the upper class get taxed they leave state (sometimes country) and take their both their businesses and checkbooks with them.

[torn asunder]

i only have one thing to say here...

michigan is looking at a (roughly) $1.5 *billion* deficit. EVERYBODY needs to sacrifice. i'm so sick of people going "yeah, there need to be cuts, but not to *my* area of interest!!"

so tell me, people, where the fuck is the money supposed to come from, if not from *everybody*?

ugh... sorry, i'll shut up now...

Edited February 20, 2011 by torn asunder

[creatureofthenyte]

Another nail in the coffin ?

What will you call it after Snyder brings your state back from the depths ?

"Last Rites" ?

You democrats crack me up sometimes..

Balancing the budget on the backs of working families and children ???

Easing the tax burden on businesses so they can HIRE people, boosting revenue coming in to state government, so residents can Keep more in their paychecks..

I suppose that is an "extreme" idea...you know...taxpayers Keeping money they work for, so they can pay Their bills and provide for their families...

Edited February 20, 2011 by creatureofthenyte

[TitsMcGee]

i only have one thing to say here...

michigan is looking at a (roughly) $1.5 *billion* deficit. EVERYBODY needs to sacrifice. i'm so sick of people going "yeah, there need to be cuts, but not to *my* area of interest!!"

so tell me, people, where the fuck is the money supposed to come from, if not from *everybody*?

ugh... sorry, i'll shut up now...

+1

[phee]

It should not come from schools if we ever want people to live in this state to be productive.... It should come from those who afford it.

[Slogo]

The problem with trickle-down economics is that it relies almost solely on faith. "The rich always want what's best for everyone and would give everybody raises if their taxes were cut". I know from personal experience that that doesn't happen. If Snyder has taken a pay cut, good for him. I applaud him on that.

I'm also getting annoyed about people complaing about any tax increases for anybody ever. Tax increases are a part of life...have been for thousands of years. People make it sound like we are never going to have a tax increase in this country again and when that happens it'll be the end of the world. One banker likened the 3% increase in taxes on the rich that didn't happen to the invasion of Poland in WWII. If that isn't more than a little crazy then I don't know what is. When you want something big to get done you need the money for it (including wars).

(sorry, I know I kinda ranted there)

[darknight1]

It's reasons like Snyder's proposal to "fix" Michigan's economy that compelled me to leave. I just have to laugh when the governor's office or the mayor of (insert city name here) convenes a press conference to announce a new auto plant that's bound to fail is being brought into the state. It does nothing, since in most cases, most of the plant's workers are trucked in from elsewhere, as are the companies contracted to build these places. It offers no true solution. And, as it always goes, the company will eventually cease operations to move overseas, while retaining offices in Michigan. That solves nothing. And his proposal to make cuts to the educational system in the state is not good at all. This guy is doing it all wrong. I'm glad I left Michigan back in 2009, because the entire state's political leadership on both sides of the aisle seems to just screw over Michigan's workforce more and more.

[torn asunder]

...This guy is doing it all wrong...

state is in debt. so what solutions are there besides either increasing revenue (raising taxes), or cutting spending, or both?

seriously... in your household, if your bills are more than you can afford, you can either reduce your costs (cut spending) or increase your income by working more hours or getting a second job (increase revenue). what else is there? i mean, really, what?

[KatRN05]

i only have one thing to say here...

michigan is looking at a (roughly) $1.5 *billion* deficit. EVERYBODY needs to sacrifice. i'm so sick of people going "yeah, there need to be cuts, but not to *my* area of interest!!"

so tell me, people, where the fuck is the money supposed to come from, if not from *everybody*?

ugh... sorry, i'll shut up now...

I agree with you on that.

[darknight1]

The appropriate question to ask is how could you increase your hours or even obtain a second job given how many companies have scaled back on their employees' work hours, or on the other side of the coin, how few jobs there are in Michigan?

state is in debt. so what solutions are there besides either increasing revenue (raising taxes), or cutting spending, or both?

seriously... in your household, if your bills are more than you can afford, you can either reduce your costs (cut spending) or increase your income by working more hours or getting a second job (increase revenue). what else is there? i mean, really, what?

[taysteewonderbunny]

state is in debt. so what solutions are there besides either increasing revenue (raising taxes), or cutting spending, or both?

seriously... in your household, if your bills are more than you can afford, you can either reduce your costs (cut spending) or increase your income by working more hours or getting a second job (increase revenue). what else is there? i mean, really, what?

That is a very good question.

I think both parties want to do both: increase income and reduce costs. The difference lies in how we envision that happening.

Even as a Democrat with some very liberal leanings, I can see some good in what Snyder is doing. Renovating tax codes so that they are simpler and more realistically outline the appropriate tax burden of each sector is a good thing, even if it loses friends temporarily on both sides of the aisle.

I am in favor of simplifying the tax code. That does not mean that I think that everything Snyder has done is fair. The jury is still out on whether supply side economics really improve quality of life. In the evolving world economy, companies still give priority to shipping jobs overseas and overpaying their executives when given tax breaks. Not all of them, no, but in significant enough numbers that it does not create the wave of job creation often touted.

What we know WILL help is having a highly educated pool of talent for entrepreneurs to hire from, since many of the jobs that are not easily exported require this level of expertise. THAT in mind, Snyder's decision to offset the loss in revenue generated by his business tax cut with cuts in spending in education seems a bit of a gamble. It may be balanced NOW, but at what future cost?

[Msterbeau]

The problem with trickle-down economics is that it relies almost solely on faith. "The rich always want what's best for everyone and would give everybody raises if their taxes were cut". I know from personal experience that that doesn't happen. If Snyder has taken a pay cut, good for him. I applaud him on that.

I'm also getting annoyed about people complaing about any tax increases for anybody ever. Tax increases are a part of life...have been for thousands of years. People make it sound like we are never going to have a tax increase in this country again and when that happens it'll be the end of the world. One banker likened the 3% increase in taxes on the rich that didn't happen to the invasion of Poland in WWII. If that isn't more than a little crazy then I don't know what is. When you want something big to get done you need the money for it (including wars).

(sorry, I know I kinda ranted there)

+1000000

Faith. What conservatives have lots of... for their own pet projects. Ask them to actually hire people? Oh... sorry... That might bite into profits or the CEO's five zillion dollar bonus. The past few months I keep hearing that unemployment is going down, yet hiring is not significantly going up. Employers rarely do what's right, they do what's best for the bottom line and nothing more.

I waited to see what stuff Snyder would propose before I opened my mouth about him, but it seems clear he's here to help himself and his buddies in business and not caring a ton about the regular citizens of the state. He may balance the budget but at what expense? Ours.

[candyman]

I love how any mention of fixing the economy dies with "blah blah blah CEO!" and "blah blah blah evil corporations!" and the "blah blah blah it hurting ME what about ME!"...

I see we are on the road to success...that myth about mentioning the evil corporations and CEO's 3 times in front of a mirror heals the economy that much more right?

Look a little but of advice here...its probably ALWAYS going to suck no matter what. YOU will NEVER get to pass the laws that rule over these things just like I cannot change the things that the military puts on me...because of my rank and because of your stature as a common person. HOWEVER...you can change how it affects you by how you deal with it...drink water and drive on because bitching won't make it better and that blister on your heal is only going to get bigger for the next 6 miles...

[darknight1]

Snyder is no better than Granholm or Engler were. All three have only shown an interest in keeping themselves in business and stuffing their own pockets. That's Michigan for you.

+1000000

Faith. What conservatives have lots of... for their own pet projects. Ask them to actually hire people? Oh... sorry... That might bite into profits or the CEO's five zillion dollar bonus. The past few months I keep hearing that unemployment is going down, yet hiring is not significantly going up. Employers rarely do what's right, they do what's best for the bottom line and nothing more.

I waited to see what stuff Snyder would propose before I opened my mouth about him, but it seems clear he's here to help himself and his buddies in business and not caring a ton about the regular citizens of the state. He may balance the budget but at what expense? Ours.

[LadyKay]

I didn't vote for him.

[n0Mad]

I didn't vote for him.

"You don't vote for kings."

[Slogo]

"You don't vote for kings."

Ha!

[phee]

I don't know.... Its not the cutting... I see that.... its that the cuts they are proposing seem to do more damage then good.... very rarely do they seem to ask those who can afford it to cut back MORE than those who can't.

[Nightgaunt]

As long as people feel like they have to vote either Democrat or Republican, it's going to be business as usual. Maybe it's time to see what a middle-class Libertarian or Constitution Party candidate can do, rather than a filthy rich, utterly corrupt Republicrat. IMO, as long as we allow the powers that be to limit the debate to cutting costs/raising taxes, we're going to see the problems exacerbate. No one wants to discuss the real roots of our problems like that fact that government involvement in education has NEVER worked no matter how much funding there is. Let's start phasing out all these wonderful tax-funded intrusive government programs and watch all the new industries and jobs appear. Just for example, take education. The money you'd save on property taxes would enable you to send your child to one of the hundreds of new private schools that would spring up. Costs would have to remain at a reasonable level, as all these schools would be competing for your business. YOU, as a parent, would get to decide what kind of education your child receives. Apply the same kind of thinking to health care. Every time government sticks its nose into our lives, that part of our lives gets hideously expensive and the quality of that part of our lives spirals downward. We've been trained to think that we can't possibly survive without a huge, sprawling government, but I think we'd all be pleasantly surprised.

[Scar My Machine]

My complaints are 1) Republicans supporters that complain about Democrats raising taxes but are ok with republican's raising taxes (yes, I have read anti Obama remarks from some here.) and 2) capping (or reducing) the film industries tax breaks and thus, making every movie project pull out of Michigan. Yea - that's a great idea, kill those jobs altogether. And 3) taxing the retired community......WTF? Does he really expect thos people to stay here? I mean really. And how absurd if some pro conservative party to bash one party for implementing taxes and applaud their own party for doing the same damn thing.

So let's see (if some have missed things) the new Republican Governor has effectively put more people out of work, raised taxes, and he has the gall to say this will be best for all of those still living here.

So where's the good part to all of this that I am not seeing?

[Scar My Machine]

The whole thing is real easy to understand, the reality is this.....if companies continue to refuse to hire new workers, if companies continue to cut the wadges of their workers and the number of hours they are worked, making their paychecks smaller and smaller those same people that are losing money each week will continue to stop buying items they can live without. They will stop going out to restaurants, coffee shops, malls, cinema's and ect. ect.

Which will continue to hurt those same companies that are crying how people aren't buying from them or doing business with them and again, to ect. ect. and we will continue to see the negative trickle up effect. Not theory, reality.

So, if certain government officials wish to continue down this horrid path by which they keep claiming the only way out of this is thru layoff's (like fire dept. lay offs) we will all (including them) find out the harsh reality of cutting ourselves off at the ankles will cost us.

If more people were put back to work, and company CEO's would put their greed for profits on hold for a year (to help us would be to help themselves) then the State of Michigan could recover the loss of tax revenue and business's would also see the positive of people earning more equals people spending more money.

But, no conservative has to listen to what I think cuz it's just my two cents.