Total proposed spending for next year is $2.1 billion higher than current fiscal year’s budget
For Immediate Release
Thursday, Feb. 11, 2010
Contact: Michael D. LaFaive
Director, Morey Fiscal Policy Initiative
MIDLAND — Michael D. LaFaive, the Mackinac Center’s director of fiscal policy, today characterized Gov. Granholm’s proposal to impose a $554 million tax hike as “one last sop to Lansing politicians, their lieutenants and government employee unions.” The governor argues that her proposed tax system will become revenue-neutral after 2013, but LaFaive observed, “Revenue-neutral or not, lawmakers should not be restructuring the state’s tax system before adopting significant spending reforms — reforms more fundamental than the half-hearted measures the governor has proposed so far.
“The governor is calling in tax architects while Michigan’s house burns down,” LaFaive added. “Michigan’s per-capita personal income is already
LaFaive and Mackinac Center Adjunct Scholar James Porterfield recently estimated that the state could achieve at least
LaFaive added: “Michigan lawmakers hit Michigan with a 2007 tax hike worth
Mackinac Center analysts will be responding to other components of the governor’s tax and budget proposals on the Center’s blog, “The MC.” Center Fiscal Policy Analyst James Hohman has already posted entries titled “Governor Wrong About Headlee Limits” and “Governor’s Tax Hike Proposals Increase Already Juiced System.”
The Mackinac Center is a free-market research and educational institute headquartered in Midland, Mich.