http://www.mlive.com/politics/index.ssf/2011/02/gov_rick_snyders_budget_reveal.html
Governor Rick Snyder plans to cut MI revenue sharing by 40% in his latest proposal for the MI budget. His plan seems to avoid class favoritism- which is great except for the impact it will have in some instances. Snyder does plan on cutting on the earned income tax credit for low income families. Yet he also plans to restrict high income earners from claiming personal exemptions. These struck me as dicey but also important moves, as, "Eliminating the exemption entirely would bring in nearly three quarters of a billion dollars."
Opinions on these two moves? Or others from the article?
The "excruciating cuts in K-12 and higher education funding sting at all income levels" stood out to me. I like to hear that he is behaving like a political agnostic. The last thing we need in this situation is extreme disagreement on issues like we saw in Wisconsin today. It's also good to hear that the plan avoids "class favoritism." What exactly is Michigan revenue sharing? I am a little confused on the meaning in an economics context.
ReplyDeleteHe is killing the Michigan Business Tax, which would help out with the job situation in Michigan. Every state is in the same position of hurting someone to get back some of the deficit we have created. This seems like a fair scenario that he has proposed. Cutting some tax for low income families is a good thing too. As angry as some citizens may be, pensions are not conducive to proper allocation of funds in the long run, which will definitely anger people, but has to be done.
ReplyDeleteI really wish politicians actions weren't always informed by their self-sustaining need to be reelected. I may not agree with what Rick Snyder does, but at least I commend him for taking action. Maybe Michigan is so politically diverse, that no one has really united for widespread protests. These cuts affect many people across the board, government employees, students, parents, almost all income brackets. I personally wonder what effects this will have on education in the long run.
ReplyDeleteApart from the cuts to the Education department, I agree with his cuts. The idea itself is also great of sharing the burden among all segments of society. If children, students and working adults will be affected by cuts then why should the retired population be exempted? It is also commendable that the Governor is taking a step that could potentially lead to a political suicide.
ReplyDeleteI hear you JJ. The budget needs to be cut. Good policy makes no one happy. Equity needs to give way to efficiency to keep MI in the black.
ReplyDeleteThese cuts are very bold but I respect him for making this move. Action clearly needs to happen and this is a step in that direction. We will face cuts in the budget no matter what. As Laura said new policy (I guess we don't really know if these cuts are good yet) will cause people to be upset, but we need to get over that and face the facts.
ReplyDeleteOne of the retirees that was interviewed at the casino said "not that" to the idea of taxing pensions when asked what he/she would do to fill a $3 billion budget hole; this is a perfect example of the fact that everyone agrees with or at least recognizes that we need to fix the budget deficit, but no one wants to be the one to make a sacrifice. Though I don't completely agree with everything Gov. Snyder is proposing, I really appreciate that he is doing what he thinks is in the best interest of our state with little concern for his own re-election. I also think that it's fair that he is hitting all segments of society to share the burden of reducing this deficit.
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