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  • Outside the Beltway: Michigan Teaches the Lessons of Tax and Spend Progressivism

    While Time Magazine has set up shop in Detroit to chronicle the continuing decay of one of America’s great industrial cities, the Wall Street Journal has found a teachable moment 90 miles northwest in Michigan’s capital city: government cannot tax and spend its way out of deficits and joblessness.

    As the Wall Street Journal reports, Michigan’s 15.2% unemployment rate is the worst in the country, with the state having lost 750,000 jobs since 2000. Shockingly, since 2007, two families move out of Michigan for every one family that moves in. Oppressive taxation and out of control spending just might have something to do with it. From the WSJ:

    In 2007 Governor Jennifer Granholm signed the biggest tax increase in Michigan history, with most of the $1.4 billion coming from business. The personal income tax—which hits nonincorporated small businesses—was raised to 4.2% from 3.95%, and the Michigan business tax levied a surcharge of 22%. The tax money was dedicated to the likes of education, public works, job retraining and corporate subsidies. Ms. Granholm and her union allies called these “investments,” and the exercise was widely applauded as a prototype of “progressive” budgeting.

    The result of the “progressive” budgeting is evident across the state. Aside for soaring unemployment, businesses are shutting doors, homes are falling into foreclosure, and property values have plummeted. Now, as the WSJ reports, Michigan is facing a $1 billion shortfall in projected income (despite higher taxes), skyrocketing deficits and even more taxes, possibly to the tune of $600 million. And this in a state that has received $120 million in federal stimulus funds which have created, so far, a whopping 397 jobs. That’s $300,000 per job.

    Businessman Steve Wynn, who recently appeared on Fox News Sunday with Granholm, might have summarized this lesson in governance best when he boldly proclaimed, “Government has never increased the standard of living of one single human being in civilization’s history.” Watch:


    Posted in Economics [slideshow_deploy]

    7 Responses to Outside the Beltway: Michigan Teaches the Lessons of Tax and Spend Progressivism

    1. Carlspan, DC says:

      The truth is a stubborn thing. When will the Dems learn? Thanks for posting this.

    2. Freedom of Speech, T says:

      I do not feel sorry for the people of Michigan.

      They are strong pro-union and "democratic".

      They vote these people in. They did this to themselves. Expect THEM to blame someone or something else.

      It must be a "vast right-wing conspiracy".

    3. Pingback: Outside the Beltway: Michigan Teaches the Lessons of Tax and Spend Progressivism | Conservative Principles Now

    4. Scott Badenoch says:

      Michael, Keep pluggin' !

    5. Mike Brownfield says:

      Thanks, Scott, for checking out my blog!

    6. Todd Clark says:

      Help I am surrounded by liberals and they have caused so many people to be unemployed that I can't even sell my house to get out of here! Is there anywhere left in the US where people value freedom and understand personal responsibility? The sad thing here is the number of auto workers that are not working yet still receiving 80% of there pay for not working.

    7. Roberto Sanchez, Fl says:

      I agree completely with the final statement. The single greatest aspect of the United States when it was founded was the dramatic reduction of a central government. The oppressive government of King George was replaced by the Constitution, which gave freedoms that had not been enjoyed throughout all of human history. The Founding Fathers' commitment to keep government out of our lives has resulted in the most free and prosperous nation in the world, even over 200 years after its founding. Unfortunately, with King Obama bringing the oppressive hammer of government down on the American people, the prospect for future American prosperity is looking very bleak.

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