Friday, June 29, 2007

A reality check for Michigan's GOP

From the Citizens Research Council of Michigan , a refreshingly fact-filled look at our state's financial position:

Michigan’s Tax, Revenue and Spending Situation.

1. Michigan is a federal tax donor state. For every federal tax $1.00 sent to Washington, only $.85 is returned back to Michigan. Tax Foundation. http://www.taxfoundation.org/taxdata/show/347.html

2. Shrinking tax revenue has made it more difficult to balance the state budget. A shortfall of around $800 million exists this year, and the deficit in next year's budget could be $1 billion or more.In the previous four years, the state wrestled with more than $4 billion in shortfalls. Tax cuts passed beginning in 2000 -- including cuts in the Personal Income Tax and the Single Business Tax, which expires at the end of the year -- have chopped state revenue by $1.4 billion a year, according to state Treasurer Robert Kleine. Michigan is losing jobs, home prices are sinking, foreclosures are rising and the state has a huge budget deficit. This is not exactly a pretty picture. http://globaleconomicanalysis.blogspot.com/2007/02/state-tax-revenues.html

3. Michigan has cut its budget 40% in the last 6 years, when adjusted for inflation. Michigan’s tax burden is below the national average. Michigan state government is far smaller today than under John Engler. Michigan has 52259 employees today compared with 61493 in 2000. State government has passed dozens of tax cuts in the last several years which have, along with economic problems, threaten the ability of government to deliver basic human services.http://www.mitaxtruth.com/attachments/DetNews022807JacobsOpEd.PDF

4. Personal income tax rates in Michigan have fallen:

1967 2.6%
1971 3.9%
1975 4.6%
1982 5.6%
1983 6.35%
1984 5.35%
1986 4.6%
1993 4.4%
2000 4.3%
2001 4.2%
2002 4.1%
2003 4.0%
2004 3.9%

http://www.crcmich.org/Almanac/Taxes/stinchis.html

2 comments:

Scott said...

Thank you for this information!

Donna said...

This is good solid information that we can use to explain to people who are buying the Republican line that we should cut government further and cut taxes again. This explains why we need a tax increase and how the state economy got into the mess it's in. Too many people are blaming Gov. Granholm who inherited a bad situation.