Monday, September 24, 2007

Michigan Tax Fight Continues

Michigan still does not have a budget and a Government shutdown is possible. The Democratic Governor and House are fighting with the Republican Senate. The Gov has been unable to get 56 votes in the Republican controlled Senate necessary to raise income tax rates. The Republicans have proposed major spending cuts but the House will probably not go along. All the normal players are taking up all the normal positions. The very strong Michigan labor unions are very consistently pushing for higher taxes and bigger govt. All the while the Michigan economy goes in the toilet and State unemployment is at its highest rate in many years. A tax increase will simply accelerate the decline of the Michigan economy.

What is unusual is how strongly each side is holding on to their positions. Should be a very interesting next few days.