Friday, February 22, 2008

Can We Really Afford this Tax Increase? 

Fact-checking a call for another $5 billion

Filed As:  Budget and Tax

A group of universities and city officials across the state of Michigan is calling for $5 billion in tax increases. Can a state that has been the poster child for the term "one-state recession" afford it?

The Mackinac Center for Public Policy says that if you look at the numbers, the "Michigan Fiscal Responsibility Project" overstates the state's ability to pay. "Michigan’s per-capita personal income increased by 12.8 percent, while inflation increased by 13.8 percent," say Michael D. LaFaive and Diane S. Katz.

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