Essay: Balancing Act - 4/15/2008
She appeared to promise to avoid raising taxes or fees of any kind this year. Now, it is absolutely true that the present shell-shocked legislature would be unwilling to raise taxes even if doing so could cure cancer and make the Detroit Lions a winning team.
Yet you never want to limit your options, or paint yourself into a corner. That is what George H.W. Bush did when he told the Republican National Convention twenty years ago, “Read My Lips.
“No New Taxes!” Two years later, he found it impossible to avoid raising taxes. Conservatives felt betrayed, and Democrats, who had been in favor of raising taxes, used the moment and the sound bite to gleefully portray Bush as a typical hypocritical politician.
Bush had some excuse for tying himself into knots over taxes. At the time, he was running for president and trailing Michael Dukakis in the polls. Dukakis later self-destructed magnificently, but when Bush promised no new taxes, he couldn’t have foreseen that.
Granholm had far less excuse and as a matter of fact, doesn’t really seem to have completely closed the door. What she said on January 29 was this: “The budget I’ll present to the Legislature next month will contain no new fees or taxes.”
As I read it, that says nothing about not raising taxes if a sudden crisis comes and the roof falls in or the Canadians cross the border and seize Port Huron. Yet her remarks were immediately seized on as a pledge never to raise taxes, and judging by everything she has said since, the governor seems to regard it that way.
She did that, I think, to try to make nice with the legislative Republicans, who still control the state senate.
But I am a bit surprised she gave away a bargaining chip in advance.
True, nobody is going to go for another general tax increase. But you can make a good case for raising hunting and fishing licenses, for example; ours are cheaper than many other states.
There are probably other fees that it would make sense to raise and which would cause a minimum amount of pain. After all, nobody makes you go hunt deer or bear, for example.
That’s not an argument in favor of more taxes. But the nation in now commonly acknowledged to be moving into a recession. That means, almost certainly, that state revenue will fall short.
Which will mean last-minute budget cuts. Now, I just renewed my driver’s license for four years. That cost me eighteen dollars.
If they kicked that up to twenty-five bucks, almost none of us would really notice the difference, and it would mean about ten million new dollars a year for the state. If that helps Lansing from further slashing aid to education, I’d be there in a heartbeat.
And bet you would be too.

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