Nov 7, 2005
Democratic Governor Jennifer Granholm managed to find 1.1 billion dollars to give as a gift to Michigan corporations.
The state took concessions from state workers and cut social programs over the last two years, claiming the state had a budget deficit. Actually, the state wound up with budget surpluses in both years.
But rather than putting money back into social programs or repaying workers for those concessions, Granholm reached an agreement with state legislators to reduce corporate taxes. They cut property taxes on all businesses by 15%. They also reduced the Single Business Tax and created a 1.3 billion-dollar fund for “economic development.”
Granholm says of the plan, “Michigan’s economy will feel its impact for generations and generations to come”
The people of Michigan certainly are about to start feeling another big impact. As these business tax cuts take hold, they provide another excuse to demand concessions from state workers and reductions in social programs and public services. And some of these reductions in social services are included in this new budget deal.