Michigan Losing Money

George Bush
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Michigan would lose at least $125 million a year if federal lawmakers approve President Bush's latest economic stimulus package. That's according to a report by the Washington-based Center on Budget and Policy Priorities.

Bush wants to eliminate the tax on corporate dividends, which are now counted as income when Michigan taxes its residents.

Michigan Republican Party chairman Rusty Hills defends Bush's plan. He says it will boost state revenues by creating more jobs.

According to the analysis, Michigan would be the ninth-highest state in terms of revenue losses. The state already faces an estimated deficit of up to two billion dollars in the coming fiscal year.