Americans for Prosperity-Michigan

Tax increases won't solve state budget mess

Tax increases won’t solve state budget mess
Detroit News          September 12, 2009
by Scott Hagerstrom

Michiganians will be hearing a lot of kicking and screaming about how tough it is for Michigan lawmakers and the governor to agree on a state budget that is nearly $3 billion in the red.

They have until the stroke of midnight on Sept. 30 to figure it out. A raft of budget cuts and — incredibly — tax hikes have been proposed. Politicians and interest groups are negotiating behind closed doors, making it impossible for citizens — who provide the cash being fought over — to know what’s going on.

We do know that spending reform proposals from all sides of the political spectrum are being ignored by Gov. Jennifer Granholm. Her timeworn idea is once again to balance the budget by raising taxes. Tax hikes don’t solve budget woes; they feed them. The redistribution of more money from taxpayers to tax spenders only postpones government restructuring until the next — and much larger — budget deficit.

Could there be a worse time to reach deeper into the pockets of Michigan families to solve the state government’s budget problems? The people of Michigan, more than one-in-seven of whom are out of work, have budget crises of their own.

Taxing Michigan families is the easy way out of this budget mess for public officials, but definitely the worst way out for the hard-working people of Michigan. Lawmakers need to remember whom they work for and vote accordingly.

Michigan families are cutting back and making tough decisions in this struggling economy. It’s time for state government to do the same.

The state budget has grown by more than $10 billion in the past decade. Just as consumers are adjusting their spending according to their new budget realities, it’s time for state government to live within its means.

The Michigan Senate has passed a balanced budget with no tax increases, and House Republicans have made public a similar plan. The governor and Democrats in the Michigan House must present their alternatives, so Michiganians can have an open and honest debate on the state’s budget situation.

We need structural reform of state spending. We need to look at the programs and services we really need and eliminate those we can’t afford.

The governor needs to put her plan out there and have her proposed tax increases debated. She needs to state why she is breaking her promise to Michigan families now, rather than rush tax increases through at the last minute as was done in 2007.

Michigan can’t tax its way out of this budget mess. Reforms are needed. Now is the time for Michigan’s leaders to step up to that challenge. The people of Michigan should demand that they do.

Scott Hagerstrom is state director of Americans for Prosperity-Michigan.