Under a proposal by Granholm and some state legislators, the state cigarette tax would rise by 12.5% to $2.25 per pack and the tax on beer would double to 3.8-cents per bottle. The additional revenue would be used partially cover Michigan’s $2.7 billion overspending problem (aka “budget shortfall”) for the next fiscal year.

 

On Wednesday, the “Coalition for the Needy” came out in public support of the Granholm plan arguing that higher taxes will ensure that government services are not cut for the poor in the current budget. However, the logic behind this argument is completely backwards: low-income residents are the primary consumers of tobacco and alcohol products. For example, smokers have a median income of a little less than $36,000, which is about 30% less than non-smokers. How is taking money out of low-income residents’ pockets, routing it through an inefficient government bureaucracy, and returning it in the form of subpar government services supposed to help anyone?

 

Over the past months, there has also been much discussion in Michigan – albeit unlikely – about switching to a graduated tax structure from the state’s current flat 4.35% personal income tax (see here and here). However, 81% of Michigan businesses are small businesses and well over two-thirds of these employers pay taxes under the personal income tax. This means higher taxes for small businesses and less money to expand, hire more employees, or raise wages.  All while Michigan has the highest unemployment in the nation at 15.2%.

 

See below or click here for ATR’s press release condemning Gov. Granholm’s proposed tax hikes.

 

Granholm is an Obama follower...expect nothing less from her than copycat policies
>> Mergatroid Thursday, August 6, 2009 5:15 PM Report Comment

If the issue is in reducing resources for the most needy, then why is it the state refuses to address the waste, abuse and fraud in these subsidized programs? The time for contractual debarments, sanctions and mandates that top-heavy local administrations stop the duplication of services, funding of phantom programming and predatory procurement, come into existence. The time has come that transparency and accountability come from the eyes, ears and mouths of the people.
>> Beverly Tran Friday, August 7, 2009 12:42 AM Report Comment

I don't get it--I'm sure if those Michigan politicians dedicated a few sessions to look for wasteful spending, they could easily find the money needed to avoid another tax. I think it's just irresponsible that the state with the highest taxes in the country raises its taxes again. Taxpayer money should only be used in extremely rare circumstances--the government was established by our founding fathers to preserve the peace and deliver justice to those wronged, not to tax its citizens beyond imagination.
>> Will Friday, August 7, 2009 10:10 AM Report Comment

The 2007 general expenditure fund was 48 billion. The current annual deficit is nearing 2 billion. 2 billion is 4 percent of the general expenditure fund. A 4 percent cut of state spending from the general expenditure fund would balance the state budget elinating the 2 billion dollar deficit. Simple math Ms. Granholm and no tax hikes were involved.
>> Bob Friday, August 7, 2009 11:32 AM Report Comment

It's simple.....Vote them all out in 2010! Cherry will be more of the same. They have no desire to correct things here in Michigan....they know taxing the people and small businesses does NOT work...so they want to tax us even more and it doesn't matter what the tax is on. It only drives more people and businesses out of the state. Look at our track record... Have they made cuts with state employees? NO, bigger government is the theme of the day. They close state parks that have the potential to generate money...saying we're too broke...but this week we find that they are opening two NEW state parks. Where did the money come from for this?
>> Up North Friday, August 7, 2009 12:18 PM Report Comment

...They've put so many restrictions on hunting and fishing that people are going to other states to hunt & fish and they're taking their dollars with them. They have a "look, but don't touch" agenda going as far as public land is concerned throughout the state and they're driving even more tourism $$$$$ out of state. Remember the missing ten million dollars that was magically found in the "rainy day fund" two years ago when "we the people" pressed them and didn't back off.....Poof - just like magic..."oh, there it is"...
>> Up North Friday, August 7, 2009 12:38 PM Report Comment

..Businesses are leaving Michigan in groves, business are going bankrupt, laying off employees, new businesses will go else where and the ones that did come here are sorry they did and most of those are struggling. We have an unemployment rate of over 15%! Wake up liberal politicians! Our lives are like a big Monopoly game to them. Michigan is among the states with the highest outgoing of citizenry. Can't you politicians figure out that what you're doing is WRONG. Granholm couldn't successfully fight her way out of a paper sack! Write your legislators my friends and remember them in 2010! We need a good old fashioned house cleaning in the State of Michigan.
>> Up North Friday, August 7, 2009 12:44 PM Report Comment

Gee, I thought when Jennifer Granholm got in there the second time she would have learned from her first 4 years of mistakes? No! She actually improved her skills by destroying private business and the jobs that went along with them, but we must put some of the blame on the voters who thought she was a caring liberal, man you people are paying the price now. huh? How ya gonna vote in 2010? Probably the same way! Never learn do ya?
>> Votemoutin2010 Friday, August 7, 2009 5:33 PM Report Comment

Is there a complete list of the 27 groups pushing for this tax, as mentioned in the Fox Detroit article? I donate to several charitable groups in Michigan and I intend to pull my support and boycott any charity that is part of this coalition.
>> Matt Thursday, August 20, 2009 8:47 AM Report Comment

They are counting eggs where chickens don't live. Most ppl that smoke will get their cigs from Indian reservations--avoiding the tax altogether. A cottage industry has evolved--non-natives getting hundreds of cartons and selling out of their car trunks. We do not have enough law enforcement to stop this. The politicians never read the Volstead Act, I guess. It is rare a legit store will sell to minors. 4'6" with thirty bucks--they get a carton from the street dealer. Politicians are getting dumber by the year.
>> Glenda Saturday, August 22, 2009 4:11 PM Report Comment

Liz Boyd is jennifer's spokesperson and she agree's with both Democrat's and Republicams when they said Granholm has no leadership skills and has proven time and time again that she will sit back and let others do her job, that of making unpopular decisions to save the State of Michigan from total financial failure. The little girl from Canada is afraid! At least John Engler kick some butt!
>> Votemoutin2010 Saturday, August 22, 2009 5:10 PM Report Comment

I think the following sums up Granholms big vision and why it does not work: "You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friends, is about the end of any nation. You cannot multiply wealth by dividing it." ~ Doctor Adrian Rogers
>> Up North Sunday, August 23, 2009 1:01 AM Report Comment

Well said Doctor Rogers! A parasite apptly decribes what government with the support of civil unions,(pun intended) has wrought. Private enterprise forced to support wasteful programs, run by over paid civil employees who copmplain they need more money and benefits is not how success is spelled. This unsustainable monster created by those elected to protect individual freedoms has collasped, or will shortly, under its own weight. What has the new administration offered for a fix? More of the same. Barrack Obama is the president of all the people, not just those looking for a free ride. Beware of those that promise you everything! True freedoms can be lost, history has shown that many times over. Pray to God that this country wakes up soon.
>> Votemoutin2010 Sunday, August 23, 2009 2:51 PM Report Comment