Michigan Governor Granholm Gives Kickback to Former Republican Tax Hiker

In October 2007, Governor Granholm shoved over $3 billion in new taxes down the throats of Michiganders telling them it would solve the state’s budget crises and turn Michigan around. However, in order to pass her tax hike, she needed bipartisan support - and she found it in former republican State Representative Ed Gaffney. Well, last week the term-limited legislator finally received his thank you note from the governor – attached to a big, fat $82,000 a year appointment to the state Liquor Control Commission.

After a private meeting with Governor Granholm in 2007, former Representative Gaffney was one of only two republicans to vote for her “temporary” 12% increase in the Michigan personal income tax, which brought over $750 million into state coffers last year.

On another note, after the budget passed in 2007, Granholm released this statement: “With the state back on solid financial footing, we can turn our focus to the critical task of jumpstarting our economy and creating new jobs.” Well, over a year later Michigan currently has the highest unemployment rate in the country at 10.6%. Good work, Governor Granholm.

For some other good posts on this story, visit the Michigan Taxpayers Alliance blog and the RightMichigan blog.

Ear to the Ground - State News Roundup

Even if Congress approves a massive $825 billion economic stimulus package, states would still be left with billions of dollars of overspending gaps to close on their own, a new analysis released Jan. 26 shows.

New Jersey Transit has threatened fair hikes if it doesn't get $150 million of Federal Taxpayer Bailout - the same day it begins construction on an $8.7 billion rail tunnel under the Hudson River, officials said yesterday.

Wisconsin Gov. Jim Doyle has created a new Pork Czar and 15 person state agency to dole out more than $3.5 billion in federal stimulus funds to be heated by the Pork Czar.

The governing body of the California Teachers Association voted over the weekend to support signature gathering for a ballot measure that would hike the California sales tax by a penny on the dollar.

The WSJ Online has a must-read article on the unprecedented state spending binge of the last five years. The GAO estimates that state and local governments will face cumulative overspending problem by $131 billion in 2009, increasing to a staggering $181 billion in 2010.

California towns are bailing out local car dealers.

Illinois taxpayers are footing the bill for at least part of Gov. Rod Blagojevich's TV tour.

Iowa Governor Chet Culver's is recommending reducing overspending by 6.5% in the budgeting year that begins July 1, which would spend less than the state budget from two years ago.

Colorado activist Freda Poundstone on Monday submitted a proposed ballot measure that would drastically cut taxes and fees paid by Coloradans on everything from car registrations to telephone bills.

Ear to the Ground - State News Roundup

As states request one-quarter of the entire bailout package to save themself from their own fiscal incompetence - making them the plan’s biggest beneficiaries - there is a silver lining today to some taxpayers.

Arizona Governor promised to "right the ship that has been looking to the left" over the weekend, and stated that former Gov. Napolitano had unnecessarily increased the state budget by $4 billion over her six-year tenure. California legislators have endorsed $6 billion in spending cuts, and Missouri Rep. Chris Kelly has filed a revenue-neutral bill that would replace Missouri's state income tax with a state sales tax.

Unfortunately, some can't break the tax-and spend habit: New York Gov. Paterson has decided to jet off on a European junket this week, despite a $15.8 billion overspending problem and growing concerns over disorder in his administration.

In a case of the plain bizarre, Virginia Taxpayers are paying for a mouse puppet to promote the Tax Department.

Finally, as freedom-hating Gov. Timothy M. Kaine seeks to double the state's tax on cigarettes to get more money for health care, in a case of the blinding obvious, state statistics have revealed that cigarette sales declined after the previous two rounds of tax increases.

Ear to the Ground - State News Roundup

After increasing spending year after year, North Carolina Senate leader Marc Basnight proposed to make taxpayers suffer the consequences of the state's fiscal irresponsibility by raising taxes on alcohol and tobacco.

Florida Governor Crist has stated would block legislative budget cuts

Alaska Governor Sarah Palin has instituted a hiring freeze and pledged to work with state lawmakers to rein in spending

Hawaii plans to spend $4 billion on roads, paid for by "increases in fuel taxes and fees once the moribund local economy starts to perk up". Which of course will cause it to come crashing back down again.

Key Iowa Democrats said Thursday they expect to debate legislation to increase the state’s gas tax by up to 8 cents per gallon this session.

Kentucky Senate President David Williams says the state needs to make deeper cuts before considering new revenue sources to deal with a projected $456 million budget shortfall.

Gov. Tim Pawlenty said Thursday the budget he will unveil next week contains "no tax increases and little in the way of fee hikes" and Pennsylvania Gov. Rendell said yesterday that he would "not propose any increases in the state's sales or personal income taxes in the next fiscal year's budget"

Ear to the Ground - State News Roundup

Moody's Investors Service said it might downgrade California's general obligation bonds, currently "A1.", giving California the lowest rating among the 50 states

In 2007 Michigan taxpayers and businesses were punished with $1.4 billion in new taxes -- the Michigan Business Tax, the 22 percent business tax surcharge and a higher state income tax -- increasing unemployment to 10.6%, the worst in the nation. While families and workers are struggling to make ends meet, state government brought in $712 million this past year more than it could spend - on the heels of a $350 million surplus the year before. Now more than ever Michigan must CUT TAXES!

The Connecticut comptroller's office says state government has added 824 full-time employees since Gov. M. Jodi Rell ordered a "hiring freeze" in May of last year.

Incoming Arizona Gov. Jan Brewer has promised to "shrink government but grow freedom"

Maryland Gov. Martin O'Malley unveiled his new budget, including $1.2 billion in cuts, 700 state employee layoffs and level-funding for numerous programs.

Ear to the Ground - State News Roundup

Arizona Senate President Bob Burns ruled out any tax increases, and said that the reason the state got into its current fiscal mess is that spending has increased faster than tax collections.

Washington Gov. Chris Gregoire has endorsed a draconican bill to impose a 'cap and trade' system - ie kill jobs by taxing companies for greenhouse emissions.

New York Democrats have decided that Gov. Paterson's 100+ hikes aren't enough, so are proposing even more tax increases on the "wealthy".

In the midst of a $40 billion overspending crisis, California Gov. Arnold Schwarzenegger appointed former Democratic Assemblywoman Nicole Parra to a newly created $128,124-a-year job and named former Republican Assemblyman Greg Aghazarian to a board slot with a similar salary. The appointments were the fourth and fifth six-figure jobs that Schwarzenegger has given to legislators who departed office last year. (The Assembly and Senate appointed three other former lawmakers to positions with similar pay). California still hopes for a $26 billion bailout with federal tax dollars.

The $2 Billion Budget Shortfall That Wasn't

Nevada Governor Jim Gibbons, Taxpayer Protection Pledge signer and as of last week, Pledge breaker, recently released his budget proposal which included a 3 percent room tax increase. Tax and Spenders in the Silver State claim the tax hike is needed to address what they say is a $2.3 billion shortfall (aka overspending) for the next biennium.

Luckily the good folks at the Nevada Policy Research Institute have revealed the real fiscal situation, employing an old but useful tool know as “facts.”

NPRI policy analyst Patrick Gibbons thoroughly debunks the myth of the $2.3 billion shortfall here. As it turns out the false deficit is derived from a baseline that assumes an automatic 20 percent budget increase, representing a government operating in stark contrast to the employers and families that have been cutting back in the midst of the economic downturn. As it turns out, the Governor’s budget includes only $900 million in cuts, or a meager 0.9 percent reduction. Indeed, many Nevada workers and businesses would gladly welcome less than a 1 percent cutback in these tough times. Click here to read the full analysis.

Not only has NPRI exposed the fallacy of the $2.3 billion budget shortfall, they have proposed a bold and innovative package of policy recommendations and reforms that would increase government efficiency, reduce waste and redundancy, and implement the structural reforms needed to protect Nevada taxpayers. Click here for NPRI’s proposal in its entirety.

In regards to Gov. Gibbons’ violation of the Taxpayer Protection Pledge, more on that to come tomorrow.

Strike One of the Troika: House Passes First Tax Hike of 111th Congress

A few days ago we asked "Who Are They Screwing First?" and with "they", we were referring to the Pelosi-Obama-Reid troika. And we now have our answer: The very same people they said they'd protect from higher taxes - Americans making less than $250,000.

We all remember President-elect Obama's solemn promise: "If you make less than a quarter of a million dollars a year, you will not see a single dime of your taxes go up." Well, never mind, huh?

Today, the House of Representatives voted to pass H.R. 2, the State Children's Health Insurance Program Reauthorization Act, a bill that would not only grow an already seriously flawed government program, but do so on the backs of a segment of the population that on average makes significantly less than a quarter of a million dollars - in fact on average little more than $36,000: smokers.

Not only should government not scapegoat a segment of the population for the use of a legal product. With this vote, we're also walking down the slippery slope of funding a program expansion on a declining revenue source. Essentially, the tobacco tax hike is no more than a place holder for the next tax hike, which will will be called for as soon as revenues dry up.

I have a hunch this was only the first of many tax hike votes. Way to start the 111th Congress!

Now it's off to the senate. You can still tell your senator to oppose this bad idea here.

Here's the roll call vote in the House of Representatives: 289 in favor, 139 opposed, and 6 NV.

Ear to the Ground - State News Roundup

New Jersey Governor set to proposes a $75 million cut to school aid while New York seeks $6.4 BILLION from the Feds for "teacher salaries & other (school) operational expenses.”

Kansas Gov. Kathleen Sebelius on Monday promised a no-new-taxes budget and cuts to most state agencies.

Massachussett's push for a gas-tax hike shifted into high gear yesterday as Gov. Deval Patrick indicated it was a serious alternative to toll hikes, and his new transportation boss distanced himself from a massive toll increase proposed on the Pike.

Tax-refugees continue to flee California

The American Lung Association continues to corruptly mismanage donors funds. Yesterday the ALA released a report praising fiscally irresponsible spending, onerously high taxes, and other misguided policies.

Oregon Gov. Ted Kulongoski has called for legislators to continue their big-government agenda, irrespective of the massive deficit their overspending is causing. Kulongoski, who is seeking $2 billion in higher fees and taxes, listed his recession-year priorities - socializing medicine, environmental spending and infrastructure - all things that will crowd out the private sector and make the economy even worse.

State governments from Rhode Island to California have run up estimated pension-fund losses of $865.1 billion.

The Omnibus Public Land Management Act of 2008 Revisited

I’m hearing that Senate Majority Leader Harry Reid has re-focused his attention on The Omnibus Public Land Management Act of 2008 and hopes to get it passed this session.

In light of Speaker Pelosi’s recent changes to the House Rules, it seems clear that the Congressional Democratic leadership has no desire to work on bi-partisan solutions to real issues. They would rather push their ultra liberal, big-government agenda and force more problems on American taxpayers.

The $10 Billion (until it’s loaded up with even more pork barrel spending) Omnibus bill is a compilation of over one hundred land-grab bills that would forever subjugate nearly one million acres to permanent federal government control and beyond the reach of anyone who wants to use it for purchase, hunting, biking, energy exploration, farming and anything else. Emboldened by a new, overwhelming Democratic majority, Senator Reid will stop at nothing to pass this shameless legislation that ignores hundreds of years of common law property rights.

The Federal Government already owns over 650 million acres of land, many of which are simply designated as “wilderness,” and many more that are kept in neglect. Since when have Americans been prohibited from inhabiting the “wilderness?” That lifestyle is a big part of our history and heritage but big city liberals don’t care. They would rather conceal their true intentions of ultimate government control beneath the rhetoric of “environmentalism.” If this is their true intention, why do they want to waste more money on acquiring new land when they aren’t even keeping up the land they already own?

Quick action is needed to stop this bill in its tracks – cloture vote is this Sunday. For more information, a 111-member coalition letter opposing the bill can be viewed at http://www.propertyrightsalliance.org/images/File/110608lt_coalition.pdf.

Ear to the Ground - State News Roundup

Have you visited www.statebooks.org yet? Check it out for the latest on state economic and fiscal policies

Some good news today:

Colorado Democratic Gov. Bill Ritter announced that he is working with state Treasurer Cary Kennedy (D) and Rep. Don Marostica (R-51) to make government more transparent by putting Colorado's revenue and expenses online

10 Governors have signed a letter to Congress opposing the proposal to abolish the secret ballot on union voting and bring back institutionalized intimidation known as card-check

Florida was able to deal with their overspending problem with no tax hikes.

But, as usual, state governors still want to hike taxes:

Maine Gov. Baldacci has unleashed a budget with a $4.1 increase in fees charged by the departments of Conservation, Marine Resources, and Inland Fisheries and Wildlife and an increase in the smokeless tobacco tax. and Georgia Governor Sonny Purdue is trying to convince the legislature to create a new tax on hospitals.

California teachers (AKA Communist Propaganda Agents) have unleashed an initiative to hike taxes, while Gov. Arnold Schwarzenegger's administration issued a plan to close many state offices on the first and third Fridays of each month , while in New York a Queens assemblyman has proposed a four-day workweek for some state employees to help offset the $15 billion budget deficit faced by New York in 2009. New Yorkers might instead want to look at the fact that New York City employee wages growing twice as fast as those in private sector with the average New York City employee cost the city $107,000 a year in wages, health insurance, pension and other benefits in the 2008 fiscal year, an increase of 63 percent since 2000, according to a new report.

Ear to the Ground - State News Roundup

A great resource has started up for state policy wonks, with the launch of www.statebooks.org, an aggregate of all #statebooks Twitter hashtags - check it out!

Utah Gov. Jon Huntsman Jr. endorsed a $2.30 tax increase on a pack of cigarettes yesterday, giving Utah the highest state cigarette tax in the country; Arkansas Gov. Mark Beebe wants to increase cigarette taxes to expand health care, and Rhode Islander Carcieri plans to increase cigarette taxes to solve the states overspending problem.

An Ohio state task force is recommending that Ohio's 28 cents per gallon fuel tax be increased by 13 cents; in Iowa special interest groups are lobbying hard to increase the gas tax by at least 5c a gallon to fund their pet projects - even though 70% of Iowans are against it.

Florida State Senator Sen. Mike Haridopolos has proposed legislation that would end welfare for politicians known as public financing.

Iowa Republicans have proposed to, cut in half the money given to each state agency, then ask leaders of those agencies to justify why they should get more.

Peter Brown has a great article at the Wall Street Journal demonstrating how low tax states fare better in times of economic downturn.

A new taxpayer-rights group was formed in Illinois: the Illinois Alliance for Growth

Maryland Gov. Martin O'Malley announced the launch of Maryland's spending transparency website, which allows taxpayers to search and view summary information on payments made to vendors that received $25,000 or more for the respective fiscal year

Watch the first ever RNC Chairman debate

The smoke has settled around the first ever Chairman debate (for either party).

This one, however, was the RNC Chairman debate hosted by ATR at the National Press Club.

Questions were asked from www.RNCDebate.org and all 6 major candidates were present.

With 600 people in attendance, the room quickly filled up. The 10 TV cameras and the 50+ media outlets had no problems covering the 90 minute forum.

To view the full debate, that was broadcast live on CSPAN-2, click here.

Showdown Over Speaker in the Lone Star State

With the Texas legislature 8 days away from convening the 2009 legislative session, the topic dominating all political discussion in the Lone Star State is the race for Speaker of the House.

Speaker Tom Craddick (R-Midland), the first Republican speaker in TX since reconstruction, had been facing a number challengers and a vocal “anybody but Craddick” contingent in his own party. However, Craddick’s reign as speaker effectively came to an end on his own accord this weekend with the announcement that he is withdrawing his name from consideration.

That leaves 15 members of the House vying for the speakership. Texans for Fiscal Responsibility has put together a list of all speaker candidates and how they rank on their Fiscal Responsibility Index, which measures how often TX legislators voted in the best interests of taxpayers (the higher the score, the better).

Click here to view the list.

Since that list was published, Rep Joe Straus (R-San Antonio), Rep. Brian McCall (R-Plano), and Rep. John Smithee (R-Amarillo) have joined the race for speaker. Straus scores a 71.43% on the Fiscal Responsibility Index, McCall has a 64.29%, and Smithee has racked up a 91%. The House Republican average is 75.01%.

ATR joins Texans for Fiscal Responsibility in taking issue with lawmakers who wish to conduct the vote for speaker in a secret and opaque manner. ATR agrees with TFR that there should be more recorded votes – not less and that the vote for speaker must be conducted in a way that is transparent and open to the public.