Americans for Prosperity-Michigan

Gov. says "I've said we're not going to raise taxes," then, "You won't see GENERAL tax increases."

Which is it Governor? “I’ve said we’re not going to raise taxes” or “You won’t see general tax increases.” What tax hikes don’t count as “general?” Maybe she only meant “in this year coming up.”

Granholm: Tax statement untrue
Governor disputes comment by Secretary of State
By Jenny Lancour, EScanaba Daily Press     –     8/22/09

ESCANABA – Raising taxes to improve Michigan’s economy is not on Gov. Jennifer Granholm’s agenda, she confirmed Friday, refuting allegations made by the secretary of state earlier this week. Both were in the area for the U.P. State Fair.

“That’s absolutely not true,” Granholm said when asked about the comments Secretary of State Terry Lynn Land made Wednesday. Land told the Escanaba Daily Press the governor wants to make cuts so Michigan citizens feel the economic pain and taxes can then be raised.

“That’s total baloney,” Granholm said when she met with the Daily Press Friday. She said she was outraged by Land’s statements and said she would be calling the secretary of state immediately after the interview.

“I’ve said we are not going to raise taxes. I’m outraged that she would say that,” Granholm said.

“The state has got to live within it’s means,” the governor added, addressing the state’s economy. “We have so much of a deficit.”

She said the deficit is largely due to the state’s long-time dependance on the auto industry, now suffering. Michigan needs to diversify its economy including looking at alternative energy sources like biomass, wind and water, she said.

When asked how the state will make up the loss, Granholm replied, “By a huge amount of more cuts…Some things will have to go into hibernation…It’s going to have to be a blend of significant cuts and reforms.”

The governor added, “You won’t see general tax increases.”

Granholm said it’s important budget decisions are done in a timely manner to avoid any government shutdowns.

“We need to bite the bullet,” she said, explaining painful cuts will be made but not dangerous cuts. “There will be no general tax increase and no cuts hurting Michigan in a way that is dangerous.”

The U.P. State Fair is among the upcoming cuts, eliminating about $1 million from the budget. In addition to cuts, Granholm said the state also needs to focus efforts on the “human capital side,” meaning jobs, including upgrading employment skills to coincide with the state’s diversification strategies.

“The strategy has to be long-term to make sure people have the ability to compete,” she said, citing the talent pool and renewable energy opportunities available in the U.P.

Granholm said she will continue to work on shaping policies to encourage business development and investment throughout the state. She hopes her legacy in office will be to have “planted the seeds” to diversify and stabilize Michigan’s economy.

Other works in progress addressed by the governor included: a phase-out of the surcharge on the state business tax; raising the minimum hourly wage – not necessarily to $10 – and balancing the economy; and her support for managing declining enrollment at schools.

In regards to health care reform, she said she very much supports providing additional quality and access. “I think doctors need to be paid a salary rather than be paid per procedure,” Granholm added. “We need to look at ways to manage that.”