Cross posted at Michigan Liberal
From Standard & Poor's- (reg. required)
NEW YORK (Standard & Poor's) Aug. 9, 2006--Standard & Poor's Ratings Services revised the outlook to negative and affirmed its 'AA' rating on Michigan's GO bonds. The revised outlook reflects the Legislature's recent repeal of the state's single business tax, effective Jan. 1, 2008. The repeal of the $1.9 billion tax creates a structural imbalance for fiscal 2008 that exceeds any one-year imbalance that the state faced during the prior recession.
Oops. That can't be good.
Here's a little more from the release-
Beyond 2007, the state is facing some tough choices. Significant increases in economic growth stemming from the elimination of the single business tax are far from certain given the structure of the state's economy.
Republicans scarin' away the business again. What will we do with such irresponsible children...
I'll let the economists decipher this. I'm just the comic relief. ;-)