Liberals will never learn

Michigan has a problem. Actually they have a number of them, but one big one is a $940 million short fall in its budget. What to do? Well, Governor Granholm has a proposal to just raise taxes and cut a little from the budget. Granholm has proposed a 2% tax on services, a new tax on businesses to replace the Single Business Tax which expires Dec. 31, and smaller increases in cigarette, liquor and estate taxes. Granholm's executive order included $171.5 million actual cuts to state programs, the rest was accounting changes to state programs such as reduced payments to state employee retirement funds. House Appropriations Committee chairman George Cushingberry, D-Detroit, said he will look at other options such as increasing the income tax or expanding the 6% sales tax to a limited number of services. One example, he said, is country club greens fees.

So there you have it. Businesses and people are leaving in droves, unemployment is the highest in the nation, the housing foreclosures and decrease in home values is also tops in the nation. How do we deal with this? Let's raise taxes and exacerbate the problem. The real fun will be when the great state of Michigan is unable to fund employee pensions. How much will taxes go up then?