While many Michigan taxpayers may be laughing or angry at the revelation by Fox News' John Stossel that he obtained a "free" golf cart using special tax breaks and giveaways for electric cars [video], very few may realize that Michigan's lawmakers have been altering this state's business tax code to provide special credits and giveaways for the industry that creates these cars. Most recently, on Dec. 31, 2009, Gov. Jennifer Granholm signed into law House Bill 5469, which expands a taxpayer subsidy for makers of electric car batteries. Two weeks earlier, overwhelming majorities in the House and Senate voted to approve the bill — only nine lawmakers out of 148 voted "no."

After consulting with an Arizona retailer that literally advertised a "FREE ELECTRIC CAR," and then legally exploiting the generous subsidies contained in the U.S. tax code, Stossel whittled the $6,490 sticker price down to zero and then paraded his taxpayer-financed toy on Fox's Bill O'Reilly show. Explaining the gambit, he noted that a large portion of his funding came from a tax credit of "$417 for each kilowatt hour of traction battery capacity in excess of four kilowatt hours."

House Bill 5469 — now Public Act 240 of 2009 — expands upon Public Act 580 of 2008, a law that allows qualified manufacturers to claim credits of $375 for each battery pack of at least 4 kilowatt hours capacity that they produce, and $93.75 for each additional kilowatt hour, up to a maximum of $1,500 per battery. The 2008 law allowed for four battery makers to claim these special tax breaks when filing their Michigan Business Tax; House Bill 5469 adds three new recipients sharing a slightly larger subsidy between themselves.

Stossel told O'Reilly that his golf cart subsidy happened because "our bloated government subsidizes everybody" and that it is part of "endless subsidies that are taking us on a road to serfdom." He also noted that the federal subsidy used to purchase his golf cart was the work of U.S. Rep. Charles Rangel, D-New York.

The Michigan lawmakers who supported HB 5469 have a different view of special tax breaks for electric cars and electric car batteries.

State Sen. Roger Kahn, R-Saginaw, hailed the passage of the bill as "tremendous news for the Great Lakes Bay Region" because he believes that it will bring battery-making jobs to an area within or nearby his district. Kahn's news release was issued jointly with state Sen. Tony Stamas, R-Midland.

In the state Senate, only three lawmakers opposed HB 5469: Sen. Nancy Cassis, R-Novi; Sen. Jud Gilbert, R-Algonac; and Sen. Alan Sanborn, R-Richmond.

In the House of Representatives, only six lawmakers voted against HB 5469: Rep. Justin Amash, R-Grand Rapids; Rep. Tim Bledsoe, D-Grosse Pointe; Rep. Kevin Daley, R-Attica; Rep. Tom McMillin, R-Rochester Hills; Rep. Fred Miller, D-Mount Clemens; and Rep. Paul Scott, R-Grand Blanc.

The bill passed the House on a vote of 96-6, with 38 Republicans joining 58 Democrats in support of the special tax break. It passed the Senate on a vote of 32-3, with the support of 18 Republicans and 14 Democrats.

The Michiganvotes.org roll call vote for House Bill 5469 is above. The original version of this story and a video of Stossel talking about his golf cart is at www.MichCapCon.com/12127.

Four years ago, Gov. Jennifer Granholm predicted Michigan residents would be "blown away" in 2011 by the strength and diversity of Michigan's transformed economy.

At the time, the state's unemployment rate was 7.2 percent.

As the Michigan governor gave her final State of the State speech on Feb. 3 and spoke of how government programs have created jobs, about 750 protesters showed up on the steps of the state Capitol as part of a "State of the Citizens" rally to remind Gov. Granholm how far off her infamous prediction has turned out to be as she reaches the end of her eight-year tenure.

"What would I tell her?" asked Steve Newman of Homer, one of the hundreds who showed up to protest the policies that they feel have paved the way for a statewide unemployment rate of 14.3 percent in December 2009. "Thanks for nothing. We didn't get blown away."

The crowd chanted "Blown away, blown away" as speakers talked of tax cuts and less government intervention as the cure to Michigan's ailing economy.

The protest became animated when a group of about 70 student-age protesters tried to shout down the Tea Party event. The group was trying to stop cuts to education. They tried to drown out the Tea Party speakers and chanted "We're students united, we'll never be divided" while the Tea Party protesters were saying the Pledge of Allegiance. While a Tea Party activist was speaking on the Capitol steps, one student grabbed a megaphone and shouted a profanity.

Sara Vitale, a student at Michigan State University, was one of the leaders of the student protesters.

"I'm completely sick of what is going on," Vitale said. "Education is the first scapegoat. Granholm is just the face of the problem. The whole system is screwed up."

Vitale defended the disruptive tactics of the student-age protesters, including the chanting during the Pledge of Allegiance.

"We're not on the same page," Vitale said of the Tea Party protesters. "They are fascists. ... They have a problem ... with our tactics? [Expletive deleted] that."

At one point, when Vitale shouted, "Tax the rich," Gary Saylor of Marshall, Mich., shouted back, "Get a job!"

"They are a bunch of spoiled, nasty kids," Saylor said.

Eventually, a row of about a dozen police officers slowly walked the student protesters back about 30 feet away from the Capitol steps.

As Gov. Granholm gave her speech, Saylor listened to the Tea Party speakers.

He was asked what he would say to Gov. Granholm if allowed inside.

"Oh, geez. 'Goodbye.' That is the best I can say about her," Saylor said.

Jim Chiodo of Holland, Mich., came to protest because, he said, the state politicians were "chasing the business out of the state."

"Maybe it's not just her, but it's her agenda," Chiodo said. "There is only one way you are going to create jobs and it ain't by spending government money. I wish I could hear her speak. I'd ask, 'Have you ever run a business and signed the front side of a payroll check?' "

About two hours before Gov. Granholm's speech, conservative political consultant Joe Munem sat in a Lansing coffee shop and said it would be a short night if he were the governor's speechwriter.

"She should just say, 'I'm sorry' and leave," said Munem.

An earlier version of this story and a Michigan Capitol Confidential video of the event are available at: www.MichCapCon.com/12052.