New $60 Million Hole in Budget Frustrates Granholm

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At a time when the governor and others felt Michigan had turned the corner headed for an economic recovery, more bad economic news arrives. The state revenue collections in June were down $60 million due to a weak withholding tax.

"It's discouraging," observes Gov. Jennifer Granholm who broke the news to legislative leaders this week. She called on republicans to embrace her call for an estate tax which would help to close the new revenue gap. The GOP steadfastly opposes what it terms the death tax.

Granholm says in order to protect the needy from more budget cuts, wealthy families need to pay the five percent estate tax on inheritances over $1 million.