Obama and Good News in Michigan

October 20, 2011 at 9:45 AM

By VINCENT DE SANCTIS

The Star's October 19 editorial lauding Michigan's recent economic growth concludes that its "key takeaway" is that the state did not have to raise taxes "to get a revenue boost". This simplistic observation ignores a major factor undergirding the editorial's own comment about increased investor confidence and a rebounding automobile industry.
 
Why a rebound? Perhaps it had to do, in part, with the Federal government's 2009 plan that saved the automobile industry and numerous related industries thus encourging investors. Since the government's intervention required tax revenue maybe a more accurate "takeaway" would be something like: "on occasion economic conditions are such that temporary government investments (i.e., tax revenue) may be needed to kick start an economy".
 
Most Americans accept that increased tax revenues from economic growth is preferable to raising taxes. To dismiss a key factor because it doesn't fit a preferred argument is disingenuous at best.

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