You Could Always be in Michigan

I do complain about California’s politics from time to time (that might be an understatement) but it could be worse. I could be in Michigan.

Now, for my Michigan clients (and I have a few) I think that Michigan is a beautiful place. I grew up in the midwest, and there’s nothing better imho then spending a Saturday afternoon at the Big House watching a Michigan football game.

That said, your politics remind me quite a bit of Sacramento…except in reverse. In Sacramento, there’s a legislature that hasn’t met a tax they wouldn’t endorse but the pesky state constitution requiring a two-thirds vote for tax increases (meaning that Republican votes are needed) stymies them. Plus, Governor Schwarzenegger acts like a Republican some of the time.

In Lansing, there’s a Democratic governor but the Michigan Senate is controlled by Republicans. Michigan has been hurt economically in recent years, with high taxes and a major industry in trouble. So Democratic Governor Jennifer Granholm apparently wants a 3% tax on doctors in the Great Lakes State.

Meanwhile, Governor Granholm has vetoed school funding measures claiming a lack of revenue. Senate Majority Leader Mike Bishop (R-Rochester) promises no new taxes. This really seems familiar, and Michiganders are in for a long battle.

Of course, neither in California nor in Michigan will the correct solution be put into place. That’s to match the budget to the revenues, cutting taxes and services to solely essential services. A lowering of tax rates would lead to an increase in tax collections. However, politicians only look at economics when it matches their political beliefs.

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