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Michigan Can't Afford to Keep Donating to Other States

Bipartisan resolution says Michigan's status as donor state must end

State Representative Vicki Barnett (Farmington Hills) discusses her resolution to end Michigan's status as a donor state at a press conference on Tuesday, Nov. 10, 2009, at the Capitol. Barnett was joined by a bipartisan group of legislators, including State Representative Mike "Huck" Huckleberry (Greenville), right, who are calling for an end to the unfair practice of Michigan sending more taxpayer dollars to Washington, D.C., than it receives back from the federal government.
LANSING – The Michigan House of Representatives today unveiled a bipartisan resolution calling on Congress to stop Michigan and other states with unemployment rates above the national average from being "donor states" – sending more dollars to Washington, D.C. than they receive in return. Michigan's jobless rate in September was at 15.3 percent – more than five points above the national average.

"For decades, Michigan has been an engine for national growth, helping to build the nation's roads, defense and infrastructure by sending more tax dollars to other states than it has received in return," said State Representative Vicki Barnett (D-Farmington Hills), lead sponsor of the resolution. "Now that our unemployment rate tops the nation, all we're asking for is the same consideration from other states as we work to turn our economy around and get back on our feet."

Michigan taxpayers continue to carry the burden of contributing more than their fair share to other states, despite the fact that Michigan has led the nation in unemployment for 29 of the past 30 months. As a "donor state," Michigan sends significantly more money to Washington than it receives in return for federal highway funding, military spending, Medicaid and other programs. According to the Tax Foundation, Michigan received only
92 cents back for every dollar the state sent to Washington in 2005, compared to states that received the most:
New Mexico, $2.03; Mississippi, $2.02; Alaska, $1.84; Louisiana, $1.78; and West Virginia, $1.76.

In the days ahead, Barnett will be working with the Michigan Congressional delegation to champion this plan to end the donor state status for Michigan and other states with crippling unemployment rates.

"In these tough economic times, it's painfully clear that our state can't afford to send much-needed state dollars to pay for federal projects in other states," said State Representative Mike "Huck" Huckleberry
(D-Greenville). "Michigan taxpayers have paid their dues, and then some. I urge Congress to fix this unfairness and let our taxpayers benefit from their money by keeping it right here to get our workers back on the job and get our state back on track."

 

Copyright:

© 2010 Michigan House Democrats

Our Mailing Address:

P.O. Box 30014 • Lansing, MI 48909-7514

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