The Associated Press
A look at some of Michigan's economic indicators.
_Michigan's August unemployment rate was 7.4 percent, well above the national average of 4.6 percent.
_Michigan ranks in the top 10 states on home foreclosures.
_Employment in the state's transportation sector is expected to drop more than 12 percent in 2007 and more than 11 percent in 2008, according to the House Fiscal Agency.
_Michigan real disposable income is expected to fall 0.5 percent in 2007, while national real disposable income is expected to grow 2.7 percent, according to the HFA.
Michigan's image doesn't look to improve anytime soon
By KATHY BARKS HOFFMAN
Michigan's image, already in tatters from the troubles caused by its shrinking manufacturing base and a budget impasse that wasn't solved until a temporary government shutdown, isn't going to recover anytime soon.
Recall campaigns are being considered against Granholm and some of the lawmakers who voted to increase the income tax from 3.9 percent to 4.35 percent or expand the 6 percent sales tax to more services.
Economists with the state and at the University of Michigan expect job losses to continue through late 2008, with nearly 50,000 jobs disappearing next year, most of them in manufacturing. Other industries, such as pharmaceuticals, are taking hits.
Under the old business tax, which expires at the end of the year, companies had to pay the tax even if they posted no profits. They also paid more if they hired more employees or offered benefits, creating a disincentive to create jobs.
Other steps may be taken to smooth out the impact of the sales tax on services. Some lawmakers have suggested letting voters decide if they'd rather pay the service tax or raise the overall sales tax from 6 percent to 7 percent. Others may try to find a way to tax fewer business-to-business services.
Lawmakers also may calm taxpayers' ire by eliminating a benefit that gives legislators and their families lifetime health care benefits starting at age 55 for anyone who has served six years in the Legislature, and by making more changes in public employee benefits that could save the state money down the road.
I heard on the news today that Michigan is the leader in unemployment of all states. Great.
I'm behind the recall of Granholm, I certainly didn't vote for her and never would have. Anyone would have been better, but DeVos was the better candidate.
The income tax increase I don't mind but the sales tax on the various services that haven't been taxed before is just unbelievable. Most don't make sense and I fail to see how it's going to bail out the state budget.
