Jump to content


Getting an "Insecure Connection" warning for Exisle? No worry

Details in this thread

Detroit goes bankrupt

detroit Michigan bankruptcy 2013

  • Please log in to reply
30 replies to this topic

#1 scherzo

scherzo

    I know things

  • Islander
  • 3,388 posts

Posted 19 July 2013 - 01:23 AM

That's a wrap...

Quote

Detroit filed the largest municipal bankruptcy in the nation’s history Thursday, marking a new low in a long decline that has left the U.S. automaking capital bleeding residents and revenue while rendering city services a mess.

The city, which was the nation’s fourth-largest in the 1950s, with nearly 2 million inhabitants, has seen its population plummet to 700,000 as residents fled rising crime and deteriorating basic services, taking their tax dollars with them.

Quote

In the 1950s, Detroit, known worldwide as the Motor City, had one of the highest per capita incomes in the country when auto plants were hiring wholesale. Now it has the highest rate of violent crime among the nation’s big cities. Average police response time is almost an hour. Nearly 80,000 buildings are abandoned or seriously blighted, and 40 percent of the city’s streetlights do not work. The jobless rate is above 18 percent, more than twice the national rate.

The abysmal services encouraged more people to flee. The city lost more than a quarter-million residents from 2000 to 2012. Tax revenue and state aid have plummeted as the auto industry hit hard times, crimping Michigan’s finances. Its best-known cultural export, Motown Records, left long ago.
Walter Russell Mead sums up this disgrace nicely...

Quote

Detroit has been spending on average $100 million more than it has taken in for each of the past five years. The city’s $11 billion in unsecured debt includes $6 billion in health and other retirement benefits and $3 billion in retiree pensions for its 20,000 city pensioners, who are slated to receive less than 10 percent of what they were promised. Between 2007 and 2011, an astounding 36 percent of residents lived below the poverty line. Last year, the FBI cited Detroit as having the highest violent crime rate for any major American city. In the first 12 years of the new century, Detroit lost more than 26 percent of its population.

And now Detroit’s desperate request for a bailout has been turned down by the Obama White House.

Progressive politicians, wonks, and activists can only blame big corporations and other liberal bogeymen for so long. The truth is that corrupt machine politics in a one-party system devoted to the blue social model wrecked an entire city and thousands of lives beyond repair. The sooner blues come to terms with this reality, the greater chance other cities will have of avoiding Detroit’s fate.
It's a shame the philosophy that enabled Detroit's downfall cannot be unlearned by it devotees. The people responsible for this would do it all again if handed another prosperous city to plunder. May they burn in Hell.
"Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
Posted Image

#2 Kota

Kota
  • Islander
  • 417 posts

Posted 19 July 2013 - 03:43 PM

Say it ain't so !

Remember this?





Quote

A little more than a year after the Democratic National Committee unveiled its “Let Detroit Go Bankrupt” attack ad against former Republican presidential nominee Mitt Romney, the tables have turned as the city announced it filed for Chapter 9 bankruptcy — under President Barack Obama’s leadership.

The ad, titled “Mitt Romney: ‘Let Detroit Go Bankrupt,’” capitalizes on an op-ed the Massachusetts governor penned for The New York Times, in which Romney wrote if the motor industry received the bailout it asked for, “its demise will be virtually guaranteed.”

The DNC took advantage of the piece and asked a host of Detroit residents what they thought of Romney’s charge to let the city fall into bankruptcy, and many said they would refrain from voting for someone who would let it fall.

And yet eight months after Obama won re-election — with 73 percent of the vote in Wayne County — Detroit has filed for bankruptcy.

“The million jobs at stake — I refused to let that happen,” Obama said during his 2012 State of the Union. “We bet on American workers, we bet on American ingenuity, and tonight, the American auto industry is back.”

Yet under the President’s leadership — and a more than $80-billion bailout later — Detroit leaves “creditors, pensioners and unions who stand to lose significantly as the state tries to rescue a city,” the Detroit Free Press reported.

Obama campaigned on his saving of a million jobs in the city because of the bailout and credited it as having prevented another Great Depression from hitting the Midwest.

link


What city could be next -

#3 Dev F

Dev F

    Straighten your pope hat!

  • Islander
  • 3,757 posts

Posted 19 July 2013 - 04:13 PM

Silly semantic games. The "Detroit" Obama was talking about during the campaign was the common slang term for the auto industry, not the municipal government of the city of Detroit. You can tell by the fact that the auto companies received federal bailout funds and the city of Detroit didn't. So I'm not sure what the argument is here -- "Obama said that the bailout would save the auto industry, but it didn't save an unrelated entity that it wasn't intended to save!"

Edited by Dev F, 19 July 2013 - 04:15 PM.


#4 Peridot

Peridot

    Elf Lynx

  • Islander
  • 2,916 posts

Posted 19 July 2013 - 04:25 PM

Well, it may or may not actually happen.   Ingham County Judge challenges Detroit Bankruptcy Filing

Just as a point of record.

Peridot
Posted Image

#5 scherzo

scherzo

    I know things

  • Islander
  • 3,388 posts

Posted 19 July 2013 - 06:16 PM

Well Dev, given that Detroit has reached the only possible outcome of unfettered redistributionist policy, I'd say 0bama is ultimately responsible for putting an ENTIRE NATION on roughly the same economic trajectory. If you're uncomfortable with semantic games, it's understandable why the stark reality of a "progressive" disaster area would be ignored completely. Sadly the majority of politicians of both parties don't give a damn, and an increasingly large chunk of the general population haven't the slightest idea why any of it is happening at all.
"Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
Posted Image

#6 Dev F

Dev F

    Straighten your pope hat!

  • Islander
  • 3,757 posts

Posted 19 July 2013 - 09:34 PM

I thought it was clear that I was talking specifically about the disingenuous "Obama said Detroit wouldn't go bankrupt!" article Kota linked to, so I'm not sure why that prompted a rant about "unfettered redistributionist policy," But if we must . . .

I find it rather amusing that the right-wingers are trying to take the not-at-all-unexpected disintegration of a city that's been roiled for decades by a perfect storm of idiosyncratic problems that go far beyond mere municipal economic policy, and turn it into some campfire tale of terror about how the evils of liberalism can strike without warning, and who knows what city will be next!

Meanwhile, we have an ongoing financial crisis in austerity-obsessed Europe that demonstrates the bass-ackwardness of trying to jump-start an economy by taking government spending out of it, and a growing wealth gap in this country that makes it clear that letting the rich hold on to more of their money doesn't cause prosperity to trickle down to anyone else. But that doesn't seem to give the fiscal conservatives pause about their own articles of economic faith.

#7 Kota

Kota
  • Islander
  • 417 posts

Posted 19 July 2013 - 10:16 PM

View PostDev F, on 19 July 2013 - 04:13 PM, said:

Silly semantic games. The "Detroit" Obama was talking about during the campaign was the common slang term for the auto industry, not the municipal government of the city of Detroit. You can tell by the fact that the auto companies received federal bailout funds and the city of Detroit didn't. So I'm not sure what the argument is here -- "Obama said that the bailout would save the auto industry, but it didn't save an unrelated entity that it wasn't intended to save!"

Obama actually said "“I wasn’t going to let Detroit go bankrupt. Or Toledo go bankrupt. Or Lordstown go bankrupt. I bet on American workers,” Obama said in the final sprint to November’s election."  link

He could have meant it both ways. Save the auto industry and the workers will in turn save the city.  He bet on the workers and they didn't save the city.  However he sure got the votes from Detroit which was his main goal and now those people want their payoff from him.

#8 Kota

Kota
  • Islander
  • 417 posts

Posted 19 July 2013 - 10:45 PM

View PostDev F, on 19 July 2013 - 09:34 PM, said:

I find it rather amusing that the right-wingers are trying to take the not-at-all-unexpected disintegration of a city that's been roiled for decades by a perfect storm of idiosyncratic problems that go far beyond mere municipal economic policy, and turn it into some campfire tale of terror about how the evils of liberalism can strike without warning, and who knows what city will be next!

A Model City created by the Democrats and it fails, who is to blame? And goodness knows there was plenty of warning by the opposing party, but yet it still happened.

Quote

One of the most important things to remember about socialism – or coercion of any kind – is it fails eventually because human beings have an innate desire for liberty and a strong need for personal property rights. In fact, the origins of government lie in the need of agricultural communities to protect themselves from violence and theft. So it is particularly ironic that in more recent times, it is government itself that has more frequently played the role of bandit. When you start taxing people at extreme rates to pay for socialist “benefits,” when you start telling them which schools their children must attend, when you start giving jobs away to people based on race instead of ability… you quash human freedom, which bogs down productivity… and if continued for long enough, leads to social collapse.

~~

In 1961, the last Republican mayor of Detroit lost his re-election bid to a young, intelligent Democrat, with the overwhelming support of newly organized black voters. His name was Jerome Cavanagh. The incumbent was widely considered to be corrupt (and later served 10 years in prison for tax evasion). Cavanagh, a white man, pandered to poor underclass black voters. He marched with Martin Luther King down the streets of Detroit in 1963. (Of course, marching with King was the right thing to do… It’s just Cavanagh’s motives were political not moral.) He instated aggressive affirmative action policies at City Hall. And most critically, he greatly expanded the role of the government in Detroit, taking advantage of President Lyndon Johnson’s “Model Cities Program” – the first great experiment in centralized urban planning.

Mayor Cavanagh was the only elected official to serve on Johnson’s task force. And Detroit received widespread acclaim for its leadership in the program, which attempted to turn a nine-square-mile section of the city (with 134,000 inhabitants) into a “model city.” More than $400 million was spent trying to turn inner cities into shining new monuments to government planning. In short, the feds and Democratic city mayors were soon telling people where to live, what to build, and what businesses to open or close. In return, the people received cash, training, education, and health care.

The Model Cities program was a disaster for Detroit. But it did accomplish its real goal: The creation of a state-supported, Democratic political power base. The program also resulted in much higher taxes – which were easy to pitch to poor voters who didn’t have to pay them. Cavanagh pushed a new income tax through the state legislature and a “commuter tax” on city workers.

Unfortunately, as with all socialist programs, lots of folks simply don’t like being told what to do. Lots of folks don’t like being plundered by the government. They don’t like losing their jobs because of their race.

In Detroit, they didn’t like paying new, large taxes to fund a largely black and Democratic political hegemony. And so, in 1966, more than 22,000 middle- and upper-class residents moved out of the city.

But what about the poor? As my friend Doug Casey likes to say, in the War on Poverty, the poor lost the most. In July 1967, police attempted to break up a late-night party in the middle of the new “Model City.” The scene turned into the worst race riot of the 1960s. The violence killed more than 40 people and left more than 5,000 people homeless. One of the first stores to be looted was the black-owned pharmacy. The largest black-owned clothing store in the city was also burned to the ground. Cavanagh did nothing to stop the riots, fearing a large police presence would make matters worse. Five days later, Johnson sent in two divisions of paratroopers to put down the insurrection. Over the next 18 months, an additional 140,000 upper- and middle-class residents – almost all of them white – left the city.

And so, you might rightfully ask… after five years of centralized planning, higher taxes, and a fleeing population, what did the government decide to do with its grand experiment, its “Model City”? You’ll never guess….

Seeing it had accomplished nothing but failure, the government endeavored to do still more. The Model City program was expanded and enlarged by 1974′s Community Development Block Grant Program. Here again, politicians would decide which groups (and even individuals) would receive state funds for various “renewal” schemes. Later, Big Business was brought into the fold. In exchange for various concessions, the Big Three automakers “gave” $488 million to the city for use in still more redevelopment schemes in the mid-1990s.

What happened? Even with all of their power and all of the money, centralized planners couldn’t succeed with any of their plans. Nearly all of the upper and middle class left Detroit. The poor fled, too. The Model City area lost 63% of its population and 45% of its housing units from the inception of the program through 1990.
~~

Every single mayor of Detroit since 1961 has been a Democrat. Every single mayor of Detroit since 1974 has been black. Detroit has been a major recipient of every major social program since the early 1960s and has received hundreds of billions of dollars in government grants, loans, and programs. We now have a black, Democrat president, who is promising to do to America as a whole what his political mentors have done to Detroit.

link


This was years in the making with billions of government dollars.

Fire up camp fire and bring the S'mores

Edited by Kota, 19 July 2013 - 10:47 PM.


#9 Cait

Cait

    Democracy Dies in Darkness

  • Moderator
  • 10,810 posts

Posted 19 July 2013 - 10:59 PM

Blaming Democrats and Liberals for the failure of Detroit [while true] doesn't mean that Republicans could have done any better despite the constant partisan outcry.  If Republican ideology and policy were the answer, even Democrats would rally around the flag pole.  The truth is, Republican rule has overseen the poorest states in the union for 5 decades.  So, fire up the campfire and bring the s'mores, and tell us a story about how this is not the work of conservatives in action.

Partisans can point a finger to the failures of the "other guys" until hell freezes over.  I see a complete failure of governance under the policies of both parties.  So, help yourself to the marshmallows, be careful not to burn them.

Rules for surviving an Autocracy:

Rule#1: Believe the Autocrat.
Rule#2: Do not be taken in by small signs of normality.
Rule#3: Institutions will not save you.
Rule#4: Be outraged.
Rule#5: Don't make compromises.
Rule#6: Remember the future.

Source:
http://www2.nybooks....r-survival.html


#10 scherzo

scherzo

    I know things

  • Islander
  • 3,388 posts

Posted 20 July 2013 - 12:18 AM

Quote

I thought it was clear that I was talking specifically about the disingenuous "Obama said Detroit wouldn't go bankrupt!" article Kota linked to, so I'm not sure why that prompted a rant about "unfettered redistributionist policy," But if we must . . .
That's where I stopped reading. If typing up your posts is as tedious as reading them Dev, find something else to do with your time. I honestly don't have the slightest interest in your condescending Jay Carney schtick, so please don't feel like you "must" respond to anything I say. Including this.

Quote

Blaming Democrats and Liberals for the failure of Detroit [while true] doesn't mean that Republicans could have done any better despite the constant partisan outcry.
So Detroit was just doomed from the start then? No amount of fiscal responsibility, or encouragement of private sector expansion, would have changed it's fate? If you feel this is a ripe occasion for running down the GOP, don't you think an example of them making similar mincemeat out of a prosperous state would make sense? If fiscal conservatism has turned a major city into a virtual post apocalyptic disaster, I'd actually love to know how and where that happened. Please note: I'm placing the blame squarely on liberal policies. That is not the exclusive domain of the Democrat Party...but certainly their specialty.
"Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
Posted Image

#11 Dev F

Dev F

    Straighten your pope hat!

  • Islander
  • 3,757 posts

Posted 20 July 2013 - 01:37 AM

*
POPULAR

View Postscherzo, on 20 July 2013 - 12:18 AM, said:

That's where I stopped reading. If typing up your posts is as tedious as reading them Dev, find something else to do with your time. I honestly don't have the slightest interest in your condescending Jay Carney schtick, so please don't feel like you "must" respond to anything I say. Including this.
"How dare you say something condescending!" seems like an odd high horse for you of all people to get up on. I'm happy to be Mr. Nice Guy havin' a chat, and I'm happy to answer snark with snark, but if I'm snarked at on the regular and expected not to respond in kind, that feels like a bit of a sucker's game.

Quote

If fiscal conservatism has turned a major city into a virtual post apocalyptic disaster, I'd actually love to know how and where that happened.
Well, there's an entire continent on the other side of the Atlantic that has been blighted for half a decade by the conservative folly that is radical fiscal austerity . . .

Edited by Dev F, 20 July 2013 - 01:37 AM.


#12 Lin731

Lin731
  • Islander
  • 4,126 posts

Posted 21 July 2013 - 08:13 PM

In fairness, there are MANY reasons why Detroit ended up where it is, some their own fault, some not. Detroit is drowning in endless power struggles with the city counsel, they have had horrible corruption problems from the counsel,  to numerous police chiefs scandals, to the sorry excuse for a human being (Kwami Kilpatrick). Detroiters have allowed race to dictate what they will or won't do. Numerous attempts have been made by the folks living in the Burbs over many years to try and help the city but they are always met with distrust and hostility. Much wailing and hand wringing has been done by Detroiters who fear the "gentrification" of Detroit and that the evil burbs are trying to "steal the jewels in Detroit's crown". The state offered to lease Belle Isle and get that park being what it once was but once again the city counsel and many Detroiters would rather it sat there and rotted before leasing it. It's stupid and makes no sense.

Conversely, the city has also fallen victim to vastly diminished income taxes due to the millions of lost auto jobs and in a state where property taxes are capped to a certain level. You have thousands of vacant properties where no one is paying income or property taxes on. Add to that, the fact that while many other struggling cities incorporated the surrounding burbs, that can never happen here because Michigan has townships (which most other states don't) and that structure will keep Detroit from ever being able to do that. Add to that the fact that our wonderful Gov. Snyder has spent most of his term doling out corporate welfare at the expense of the middle class and the poor and it's no surprise Detroit is where it is.
Posted Image
Posted Image

#13 Kota

Kota
  • Islander
  • 417 posts

Posted 21 July 2013 - 10:22 PM

Quote

Cait - The truth is, Republican rule has overseen the poorest states in the union for 5 decades. So, fire up the campfire and bring the s'mores, and tell us a story about how this is not the work of conservatives in action.


More Democratic Governors have been running the poorest states
the last 5 decades and going back many decades - than Republican.


1. Mississippi - 7 Democrat and 3 Republican - Governors in the last 5 decades-
Democrat Governors 1876 - 1992


2. West Virginia - 5 Democrat and 3 Republican - Governors in the last 5 decades-
Democrat Governors 1933 - 1957


3. Arkansas - 8 Democrat and 2 Republican - Governors in the last 5 decades-
Democrat Governors 1874 - 1967


4. Kentucky - 8 Democrat and 1 Republican - Governors in the last 5 decades-
Democrat Governors 1947 - 1967


5. Alabama - 5 Democrat and 3 Republican - Governors in the last 5 decades-
Democrat Governors 1874 - 1987



6. Tennessee - 3 Democrat and 4 Republican - Governors in the last 5 decades-
Democrat Governors 1923 - 1971


7. Louisiana - 6 Democrat and 4 Republican - Governors in the last 5 decades-
Democrat Governors 1877 - 1980


8. New Mexico - 6 Democrat and 3 Republican - Governors in the last 5 decades-
Democrat Governors 1931 - 1951


9. South Carolina - 3 Democrat and 5 Republican - Governors in the last 5 decades-
Democrat Governors 1897 - 1975


10. Oklahoma - 5 Democrat and 3 Republican - Governors in the last 5 decades-
Democrat Governors 1907 - 1963



Quote

Detroit has $18 billion – yes, billion — in general-obligation debt.
That’s a lot more than some of the other high-profile municipal bankruptcy cases in recent years. When Central Falls. R.I., declared bankruptcy in 2011, it had only about $80 million in debt. Jefferson County. Ala., had about $4 billion in debt when it declared Chapter 9 bankruptcy that same year.
And 9 more reasons of Detroit's Historic Failures
link

Quote

As the city started hemorrhaging money, how did it react? First, it increased local taxes up to the constitutional limit within the state of Michigan. To this day, it has the highest tax rates in the state. It increased union protections to the maximum; almost nothing can be done in the city without union oversight. And it refuse to scale back city services, despite a bloated bureaucracy whose size could no longer match the small size of its populace.
There are numerous examples of this. For example, it costs Detroit $62 in administrative costs for every paycheck if cuts. That’s 3.5x the average for municipal government, and 4x the average private employer. Why? Because instead of privatizing the business (which many do), it takes four times as many employees to do the payroll in the city…because of union demands. Out of the 149 people working in the payroll department today, 51 are uniformed officers of the police department…for some unknown reason.
http://www.redstate....ressive-utopia/

Edited by Kota, 21 July 2013 - 10:23 PM.


#14 scherzo

scherzo

    I know things

  • Islander
  • 3,388 posts

Posted 22 July 2013 - 01:05 AM

Quote

Add to that the fact that our wonderful Gov. Snyder has spent most of his term doling out corporate welfare at the expense of the middle class and the poor...
The governor is taking money from the middle class and poor and giving it to corporations? :dontgetit:
"Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
Posted Image

#15 scherzo

scherzo

    I know things

  • Islander
  • 3,388 posts

Posted 22 July 2013 - 01:35 AM

MSNBC Ed Schultz: Detroit, A Conservative Utopia


In a way, MSNBC Ed's madness and Dev's preposterous crack about austerity serve to illustrate something I said in the first post. The hard-left are incapable of UN-learning their chosen religion. Liberalism's inherent wisdom and virtue, are absolute articles of faith that no amount of empirical data can shake. So when a city controlled for decades exclusively by "progressives" hits the inevitable catastrophe, the faithful MUST find a way to blame their Great Satan. Sadly...once the religious left have completed their holy crusade on every blue city in this country, it won't matter a hill of beans who gets the blame. The country will be permanently damaged beyond all hope of repair.
"Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
Posted Image

#16 Kota

Kota
  • Islander
  • 417 posts

Posted 22 July 2013 - 01:27 PM

So sad to read such an article, couldn't be the union or the liberal law for goodness sake -

I agree a city can survive and even a state but a country can not.

#17 Kota

Kota
  • Islander
  • 417 posts

Posted 22 July 2013 - 01:55 PM

Quote

I find it rather amusing that the right-wingers are trying to take the not-at-all-unexpected disintegration of a city that's been roiled for decades by a perfect storm of idiosyncratic problems that go far beyond mere municipal economic policy, and turn it into some campfire tale of terror about how the evils of liberalism can strike without warning, and who knows what city will be next!

As I said what city could be next, you can pretend it's not happening in other cities if you wish-
but I'm pretty sure these are a couple very liberal cites, if I'm wrong let me know :smile2:

Detroit not alone under mountain of long-term debt

Quote

For years, watchdog groups and public-sector analysts have warned of the threat posed by unfunded liabilities. Much like the legacy pension costs that weighed on Detroit’s automakers before the Chrysler and General Motors restructurings of 2009, the worry is that revenues can’t keep up with growing debt and that rosy predictions for market returns downplay the actual financial risk.

As examples of the results: Chicago recently saw its credit rating downgraded because of a $19-billion unfunded pension liability that the ratings service Moody’s puts closer to $36 billion. And Los Angeles could be facing a liability of more than $30 billion, by some estimates.

It’s no surprise — given the pressure public pensions are putting on municipal budgets — that any move to ease those liabilities, especially through a bankruptcy court order like what’s happening in Detroit, is being watched carefully nationwide by state and municipal officials, union leaders, bond traders and retirees.
link

#18 Lin731

Lin731
  • Islander
  • 4,126 posts

Posted 22 July 2013 - 08:23 PM

Quote

The governor is taking money from the middle class and poor and giving it to corporations? :dontgetit:
    Sad but true unfortunately.
    http://hopgood.senat...s-tax-increases

    Quote

    Local members of the Senate Democratic Caucus were joined today by Detroit-area tax experts and working families to discuss the devastating effects of the recent tax increases passed by the Republican-led Legislature and signed by Governor Snyder. With the implementation of the Pension Tax, cuts to tax credits such as the Homestead Property Tax Credit and the Michigan Earned Income Tax Credit and the elimination of the child, senior and other deductions, many Michigan families and seniors have been struck hard by a major increase in their taxes. These tax changes have proven to be a massive tax shift, and the biggest tax increase on families in Michigan history.

    The individual tax changes made by Republican lawmakers favor the wealthy and inordinately affect Michigan residents with the lowest incomes, with those with annual salaries in the top one percent ($334,000 and above annually) only seeing their taxes go up by $7 while those in the bottom 20 percent (less than $17,000 a year) will pay more than $100 extra. Statistics from the Michigan League for Public Policy show that Michigan's new tax changes cut business income taxes by 83 percent and increase individual taxes by 23 percent.

    According to The Institute on Taxation and Economic Policy, 51 percent of all Michigan taxpayers will pay more in individual income taxes under Governor tax policies than they have in years past. This increased burden on individuals was enacted by Republicans in order to offset a $1.8 billion business tax handout that has failed to grow Michigan's economy or create needed jobs for workers. Among the more damaging tax increases enacted by Governor Snyder and Republican legislators over the last two years were as follows:

    The Senate Fiscal Agency reports that Michigan retirees had $294.5 million in new taxes withheld from their retirement pensions in 2012, the first year it has been in effect. According to the Michigan Department of Treasury, some seniors have had as much as $100 withheld from their pensions each month. The Michigan Earned Income Tax Credit has been cut from 20% of the federal EITC to 6%. This means the average Michigan EITC credit will drop 70%, from $439 to $132. This will force an estimated 9,000 children in Michigan back into poverty. The $2,300 special exemption for seniors, the $600-per child exemption for children 18 and under, and the special exemption for unemployment compensation greater than 50% of adjusted gross income (AGI) have all been eliminated. The Homestead Property Tax Credit is not available for homes with taxable value of more than $135,000, and is reduced for anyone whose annual household resources are above $41,000. Homeowners and renters used to qualify for the credit if their household income was no more than $82,650.

    Posted Image
    Posted Image

    #19 The Tyrant

    The Tyrant

      R.I.P. Martin Landau

    • Islander
    • 3,174 posts

    Posted 23 July 2013 - 08:46 AM

    Well, the money to pay those CEO bonuses has to come from *somewhere*... :rolleyes: :facepalm-f7e:
    Hope springs eternal, and is eternally dashed

    "Absolute power corrupts absolutely. Which is a problem....
    if you're powerless." - Drago Museveni

    'God is a comedian playing to an audience afraid to laugh' - Voltaire

    'It's in your nature to destroy yourselves.' - the Terminator, about Humanity.

    "Who knew the divine was such a dissolute, horny drunk?  Although that would explain a hell of a lot about this series... " - Christopher, about Battlestar Galactica

    #20 scherzo

    scherzo

      I know things

    • Islander
    • 3,388 posts

    Posted 23 July 2013 - 08:47 AM

    If Governor Snyder thinks tax increases on ANY income bracket is likely to do his state any good, he needs a remedial course in conservative economics pronto. Word on the street is there's a possibility of him getting opposition in a Republican primary, due to his reputation as a tax hiker. The problem I have is, you're characterizing a reduction of taxes on business as "welfare" which it certainly is not. Contrary to popular belief, the money doesn't belong to our government masters. Retaining what you've earned legally is not largess, whether you're an evil corporation or an individual worker.
    "Well, the trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so."    -Ronald Reagan, October 27 1964
    Posted Image



    Also tagged with one or more of these keywords: detroit, Michigan, bankruptcy, 2013

    0 user(s) are browsing this forum

    0 members, 0 guests, 0 anonymous users