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Jennifer Granholm on Tax Reform

Democratic Governor (MI)


2003: GOP tax policy based on unimaginably rosy assumptions

Michigan had been driven by the auto industry. When the country flourished, more people bought cars and spurred our automakers to full capacity. The rest of the economy benefitted.

Then the inevitable downturn would come. The boom-or-bust cycles were exasperating, but Michigan was unfailingly resilient.

The latest economic downturn had a new twist. Republicans who controlled things around here for a decade effectively built a new state tax structure-- and built it when economic conditions were at their peak and with economic assumptions that were unimaginably rosy.

On top of the rosy assumptions, they also adopted more tax cuts that will roll in automatically over the next few years, with no offsetting revenue increases to pay for them. The business tax rate is scheduled to drop each year until business taxes go away altogether.

Source: A Governor's Story, by Jennifer Granholm, p. 20-21 , Oct 1, 2005

Lower taxes DID create jobs, but not necessarily in America

For a decade, Michigan's leaders, Democrats and Republicans alike, had steered by the belief that lower taxes would invariably increase investment, growth, and jobs and eventually generate more tax revenue. Unfortunately, we were learning that this belief SIMPLY WASN'T TRUE. Even as Michigan had greatly reduced its tax burden relative to other states, its economy fell further and further behind.

To be clear, the cuts DID create many jobs--but not necessarily in America. Michigan's tax cuts, and those championed by Pres. George Bush at the national level, freed up capital for investors and companies. But much of that capital was being investigated far from Michigan and away from our country altogether.

The corporate and personal income tax burden in Michigan during 1999-2009 fell more than in any other state in the country--from 12th highest to 39th in the case of state and local taxes--yet people and businesses were still exiting our increasingly inexpensive state.

Source: A Governor's Story, by Jennifer Granholm, p.122-123 , Oct 1, 2005

$12B in federal economic stimulus as state block grants.

Granholm signed $12B in federal economic stimulus as state block grants

The nation's governors urge you to include state countercyclical funding as part of your legislation to stimulate the economy. This would include $6 billion in Medicaid assistance by freezing scheduled federal FMAP reductions and increasing all states' F Congress approved $20 billion in assistance to states, including $10 billion in Medicaid and $10 billion in block grants. The governors' current stimulus proposal is essentially the same, with the exception that it is a total of $12 billion as opposed to $20 billion. This proposal can be enacted quickly, as there is precedent and it is timely, temporary and targeted.

Additionally, governors appreciate federal efforts to use tax policy to get additional money into the hands of consumers and businesses to stimulate the economy. When considering tax changes to spur economic growth, governors urge Congress and the Administration to follow the maxim of "Do no harm" by avoiding changes at the federal level that would diminish state tax revenues or force state actions that would undermine the effectiveness of federal efforts.

We look forward to working with you to enact the appropriate stimulus program.

Source: Letter from 37 governors to House & Senate Leadership NGA-0801TX on Jan 28, 2008

Other governors on Tax Reform: Jennifer Granholm on other issues:
MI Gubernatorial:
Mark Schauer
Rick Snyder
MI Senatorial:
Debbie Stabenow
Gary Peters
Matt Wiedenhoeft
Terri Lynn Land

Election 2013:
NJ-R: Chris Christie (won)
NJ-D: Barbara Buono (lost)
VA-R: Bob McDonnell(Retiring)
VA-R: Ken Cuccinelli (lost)
VA-D: Terry McAuliffe (won)

Gubernatorial Debates 2014:
AL: Bentley(R) vs.Griffith(D)
AR: Ross(D) vs.Hutchinson(R)
CA: Brown(D) vs.Solis(D) vs.Villaraigosa(D)
CO: Hickenlooper(D) vs.Tancredo(R) vs.Hess(L)
CT: Malloy(D) vs.Foley(R)
FL: Scott(R) vs.Crist(D)
GA: Deal(R) vs.Carter(D)
GA: Deal(R) vs.Carter(D)
HI: Abercrombie(D) vs.Aiona(R)
IA: Branstad(R) vs.Hoefling(R) vs.Hatch(D)
MA: Coakley(D) vs.Grossman(D) vs.Berwick(D) vs.Baker(R)
ME: LePage(R) vs.Michaud(D) vs.Cutler(I)
MI: Snyder(R) vs.Schauer(D)
NM: Martinez(R) vs.King(D)
OK: Fallin(R) vs.Boren(D)
PA: Corbett(R) vs.Schwartz(D) vs.Critz(D) vs.Wolf(D)
Up for re-election 2014:
AK-R: Sean Parnell
AL-R: Robert Bentley
CA-D: Jerry Brown
CO-D: John Hickenlooper
CT-D: Dan Malloy
FL-R: Rick Scott
GA-R: Nathan Deal
HI-D: Neil Abercrombie
IA-R: Terry Branstad
ID-R: Butch Otter
IL-D: Pat Quinn
KS-R: Sam Brownback
ME-R: Paul LePage
MI-R: Rick Snyder
MN-D: Mark Dayton
NH-D: Maggie Hassan
NM-R: Susana Martinez
NV-R: Brian Sandoval
NY-D: Andrew Cuomo
OH-R: John Kasich
OK-R: Mary Fallin
OR-D: John Kitzhaber
PA-R: Tom Corbett
SC-R: Nikki Haley
SD-R: Dennis Daugaard
TN-R: Bill Haslam
VT-D: Peter Shumlin
WI-R: Scott Walker
WY-R: Matt Mead
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Term-Limited or Retiring 2014:
AR-D: Mike Beebe
AZ-R: Jan Brewer
MA-D: Deval Patrick
MD-D: Martin O'Malley
RI-I: Linc Chafee
TX-R: Rick Perry


Contact info:
Fax Number:
517-335-6863

Page last updated: Apr 11, 2014