Thursday, November 1, 2007

We're spending what?

The Detroit News has a nice breakdown on the new Michigan budget.

One item - we've expanded health spending alone by an amount ($650 million) almost equal to the job-killing sales tax increase ($725 million).

Here's an idea: instead of killing jobs and moving people onto state assistance, why not create a few jobs so we can move people off of it?

Budget breakdown: Here's how 2007-08 spending plan is shaping up
The Detroit News

While the $43 billion 2007-08 state budget does not become law until Gov. Jennifer Granholm signs each of the 17 budget bills, she and state lawmakers have agreed to major pieces of the spending plan.

But it wasn't an easy task: Debate was long and acrimonious and spanned two seasons; annual taxes were raised by $1.5 billion; and parts of the state government shut down for a few hours Oct. 1.

Taxes

New this year

$770 million in higher income taxes; $725 million a year in taxes on services

Highlights

On Sept. 30 and Oct. 1, the Legislature narrowly approved an increase in the income tax and expanded the sales tax to a mixed bag of services.

The income tax already has increased from 3.9 percent to 4.35, projected to net about $770 million a year. That's an 11.5 percent increase. The average family of four will pay an additional $157 a year after typical deductions.

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