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MICHIGAN QUAGMIRE

September 21, 2007

A reader is unhappy that I neglected Michigan when I talked about self-destructive tax increases yesterday in California and Chicago. He has a good point. From the Tax Policy Blog:

With their economy in shambles, Michigan lawmakers, spurred on by the governor, are currently working to raise taxes!

It is baffling that during a time of such economic hardship Michigan could actually increase taxes, but maybe such thinking is what got them in this mess in the first place.

Michigan is facing a $1.75 billion state budget deficit. Many state leaders want to close the gap by increasing the income tax. They say spending cuts are out of the question, as though there can't be anything the state government is doing that might not be wise.

Meanwhile, Michigan unemployment is at a 14-year high, at 7.4%. Somehow I don't think higher income taxes will lure many employers to Michigan.

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