Casperson for Congress blog

from the Wall Street Journal.

Granholm’s Tax Warning
May 28, 2008
It’s no fun to kick a state when it’s down – especially when the local politicians are doing a fine job of it – but the latest news of Michigan’s deepening budget woe is a national warning of what happens when you raise taxes in a weak economy.

Officials in Lansing reported this month that the state faces a revenue shortfall between $350 million and $550 million next budget year. This is a major embarrassment for Governor Jennifer Granholm, the second-term Democrat who shut down the state government last year until the Legislature approved Michigan’s biggest tax hike in a generation. Her tax plan raised the state income tax rate to 4.35% from 3.9%, and increased the state’s tax on gross business receipts by 22%. Ms. Granholm argued that these new taxes would raise some $1.3 billion in new revenue that could be “invested” in social spending and new businesses and lead to a Michigan renaissance.

Not quite. Six months later one-third of the expected revenues have vanished as the state’s economy continues to struggle. Income tax collections are falling behind estimates, as are property tax receipts and those from the state’s transaction tax on home sales.

Michigan is now in the 18th month of a state-wide recession, and the unemployment rate of 6.9% remains far above the national rate of 5%. Ms. Granholm blames the nationwide mortgage meltdown and higher energy prices for the job losses and disappearing revenues, but this Great Lakes state is in its own unique hole. Nearby Illinois (5.4% jobless rate) and even Ohio (5.6%) are doing better.

Leon Drolet, the head of the Michigan Taxpayers Alliance, complains that “we are witnessing the Detroit-ification of Michigan.” By that he means that the same high tax and spend policies that have hollowed out the Motor City are now infecting many other areas of the state.

The tax hikes have done nothing but accelerate the departures of families and businesses. Michigan ranks fourth of the 50 states in declining home values, and these days about two families leave for every family that moves in. Making matters worse is that property taxes are continuing to rise by the rate of overall inflation, while home values fall. Michigan natives grumble that the only reason more people aren’t blazing a path out of the state is they can’t sell their homes. Research by former Comerica economist David Littmann finds that about the only industry still growing in Michigan is government. Ms. Granholm’s $44.8 billion budget this year further fattened agency payrolls.

There’s another national lesson from the Granholm tax dud. If Democrats believe that anger over the economy and high gas prices have put voters in a receptive mood for higher taxes, they should visit the Wolverine State.

Just a few weeks ago taxpayer advocates collected enough signatures in suburban Detroit for a ballot initiative to recall powerful Speaker of the House Andy Dillon, who was one of last year’s tax-hike ringleaders. Voters seem to think there would be rough justice if for once politicians, rather than workers, lose their jobs from higher taxes.

Casperson: House Dems again put state’s future in hot water.

House Republicans this week fought to protect Michigan’s Great Lakes through the implementation of an environmental impact assessment tool that monitors water usage across the state, but House Democrats instead forced their own plan to harm Michigan businesses by overregulation and higher costs.

“This plan will hurt business, increase bureaucracy and benefit trial lawyers,” said state Rep. Tom Casperson, R-Escanaba. “Our state has the largest stake in the effort to protect the Midwest’s greatest natural resource, both environmentally and economically, which is why the approval of the water compact was so important.” “But we also must consider the needs of our agriculture and manufacturing industries, and this legislative package does not do that.”

Casperson and the House Republican caucus fought to stop the Democrat plan that goes well beyond what is required by the Great Lakes Water Compact by imposing unnecessary regulation on Michigan businesses and farmers.

The intent of the water package to is to regulate large-quantity water withdrawals in Michigan. The Republicans offered amendments to align the House version more along the lines of the Senate version, which meets the Compact guidelines. The legislation approved by the House gives more power to the Department of Environmental Quality and harms Michigan business by severely limiting their access to resources.

“Policy decisions on water usage should be based on scientific facts considered by legislators, not bureaucrats in the DEQ,” Casperson said. “This legislation will continue the harm being done to commerce in Michigan by excessive regulations and interference. The shape this policy takes is going to impact Michigan’s future, in terms of the natural resources and the ability to create jobs.”

Tom Casperson filed over 1700 petitions today with the Secretary of State, formally launching his bid for Congress for the First Congressional District. That tremendous support translates into designating Casperson as the candidate that gathered the most support among all the candidates that have filed for the First Congressional District. Since his announcement on March 17, Casperson has traveled the entire District, covering all 31 Counties, and securing petitions from each county within the District.

“It’s with great honor and optimism that I file petitions to launch my bid for Congress, Casperson said. Driving throughout the District to gather petitions has given me another opportunity to talk with residents about their concerns. And, what I heard from Houghton to Houghton Lake was that the residents of the District want congressional representation that stands up for fiscal responsibility; stands against burdensome regulations; seeks common sense solutions; avoids partisan politics; and refuses to ‘legislate’ merely through press releases and letters to the editor. I’m looking forward to working together to ensure that voice is heard to make a real difference in Michigan. “

Casperson was elected in November 2002 to the Michigan House of Representatives in an upset of Menominee Mayor Laurie Stupak. He was re-elected in 2004 and 2006, securing as much as 68% of the vote.

Casperson, elected by his peers as an Assistant Majority Whip, has served as the Chair of the House Conservation, Forestry and Outdoor Recreation Committee. He has also served as Vice-Chair of the Transportation Committee, as well as a member of the Committees overseeing Agriculture, Energy & Technology, Veterans Affairs, Tourism, and Transportation Appropriations. Additionally, Casperson has served on House Sub-Committees that examined a wide range of issues, including: Tourism, Alternative Energy, Gas Pricing, Cormorants, and Secretary of State Fees.

Prior to being elected to the State House, Casperson worked in his family’s log trucking business for 27 years, including 12 years as owner and operator of Casperson and Son Trucking. He represented the third generation in the business started by his grandfather. . He and his wife Diane, whom he married in 1982, continue to reside in Escanaba with their four children: Ashley, Tommy, Hillary, and Dane.

The First Congressional District represents 31 of the 83 Counties in the State of Michigan. With 42% of Michigan’s land mass, the First Congressional District is the largest Congressional District this side of the Mississippi river.