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Census Data: State Economy Suffering More Than State Budget

New Census Bureau data published today confirm a trend shown in previous releases: While the amount of tax revenue flowing into the Michigan treasury has fallen, the state's tax trends look brighter than the state's economy.

From 2008 to 2009, Michigan's tax revenue fell 4.9 percent. However, its number of payroll jobs fell by 6.9 percent.

Furthermore, although this state lost more total jobs than every state except two (Nevada and Arizona), 32 other state governments experienced larger declines than Michigan's in their tax receipts. On average, state tax revenue was down 8.6 percent.

These facts directly contradict claims that the state tax system is "out of sync" with a 21st century economy, "inefficient," or "failing to provide stable revenue." Indeed, the figures show that if anything Michigan's tax system is efficient at extracting more dollars out of a dwindling employment base.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

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Four Michigan Residents Sue to Get out of Federalized Health Care

The Thomas More Law Center has joined the slew of legal action sparked by the passage of President Barack Obama's health care legislation.

The Ann Arbor-based conservative law firm filed a federal lawsuit Tuesday challenging the constitutionality of federalized health care in the Federal District Court for the Eastern District of Michigan. The president signed the 10-year, $938-billion piece of legislation into law on Tuesday.

"This case isn't so much about health care, it is about what our Constitution allows and doesn't allow," said Robert Muise, the senior trial counsel at the Thomas More Law Center. "If Congress is allowed to have this power, there is virtually no limit to what law they can pass. They could force a person to engage in a commercial transaction."

The lawsuit states, "There is no enumerated power in the Constitution that permits the federal government to mandate that every American citizen purchase or obtain health care coverage or face a penalty."

The lawsuit was filed on behalf of four Michigan residents who do not have private health care insurance and object to being forced to purchase it.

"Let's face it: If Congress has the power to force individuals to purchase health insurance coverage or pay a federal penalty merely because they live in America, then it has the unconstrained power to mandate that every American family buy a General Motors vehicle to help the economy or pay a federal penalty," said Richard Thompson, president and chief counsel of the Thomas More Law Center, in a press release.

The four Michigan residents also object to being forced to pay for abortions, which the lawsuit contends is contrary to their religious beliefs and a violation of the First Amendment. Additionally, the lawsuit contends that federalized health care violates the 10th Amendment, which states all powers not cited in the Constitution go to the states and the people.

Muise said the issue has a better chance to get in front of the U.S. Supreme Court because so many other states are involved. The Associated Press reported that attorneys general from 13 states have also filed similar lawsuits. Michigan Attorney General Mike Cox is one of them.

Patrick Wright, senior legal analyst for the Mackinac Center for Public Policy, said the Supreme Court would be hesitant to take on such a big matter.

"The people who are challenging this have some things to point to, but it will be a difficult row to hoe," Wright said. "It's not hopeless. Yeah, there's a chance."

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

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State 'TEA' Groups Report Rapid Growth

When Tina Dupont got her 1,000th member for the TEA Party of West Michigan, she blogged about it on Jan. 27.

Now, the founder from Rockford has seen the group swell to 1,231 as of Monday — and it appears to be growing by the hour.

"In the last four days, it has been explosive compared to what we are used to," said Dupont, who estimated they've been getting 15 new members a day since the focus on the national health care bill.

TEA Party groups from around the state are reporting that they are seeing more and more people join their cause.

The U.S. House of Representatives approved President Barack Obama's health care legislation Sunday night. Initially disappointed, the organizers are saying there could be a silver lining.

Gene Clem of Kalamazoo helped found the Southwest Michigan Tea Patriots. His group was started in May of 2009 and now has a combined 1,300 members on their Web site and e-mail list.

Clem said he's getting about five people joining a day in the last few days, a much higher pace since the health care vote.

Now, Clem is going to recommend that his group move their April 15th TEA Party rally to a bigger park in Kalamazoo. Last year's rally drew 1,000 people, Clem said. He expects twice that this year.

"Every time we think we lose people's attention, they do something stupid in Washington," Clem said. "They are our biggest recruiters."

Rose Bogaert, chairwoman of the Wayne County Taxpayers Association, said her site will soon have a clock that "counts down" to the November 2 elections to remind people about the consequences of the vote.

"You know what has amazed me?" Bogaert asked. "The people I talked to aren't depressed but invigorated by this."

Ed Tomaszewski of the Metro Detroit Freedom Coalition said three weeks ago he went to the Romeo TEA Party's second meeting and 300 people showed up.

And he said more will come after Sunday's vote.

"TEA Party groups, after this slap in the face to the public, will see their groups grow," Tomaszewski said.

In Tuscola County, Lisa Valentine of the Western Thumb TEA Party wrote in an e-mail that their TEA Party group is having their April 15 rally in an auction barn so that they have enough room if there is bad weather.

"People are hungry for news of how they can assist in defeating (now overturning) Obamacare," Valentine wrote.

Wendy Day of Common Sense in Government said she expects a fall out for the Democrats since health care has passed.

"Not only have they awakened a sleeping giant, they caused this sleeping giant to get very angry. You will hear a roar across this country," Day said.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.