As further proof that insanity has no bounds, a Michigan Democratic candidate for governor calls for tax hikes and more welfare.



Thoroughly disgusted minds are reading State lawmaker calls for tax hikes.



A Washtenaw County legislator and Democratic candidate for governor unveiled her plan to turnaround Michigan today – a $6.5 billion a year tax hike.



State Rep. Alma Wheeler Smith said substantial hikes in Michigan’s business, sales and income taxes are needed to make investments in education and welfare programs that will restore the state to prosperity.



Smith, a veteran lawmaker who plans to run for governor in 2010, called for hikes of:



• $3 billion in mostly business tax increases by closing so-called loopholes. The new revenue would allow the state to eliminate a “business growth strangling” 22% surcharge on the Michigan Business Tax, she said.



• $1.5 billion in new revenue by expanding the state sales tax to many personal services. The expansion would also allow the state to cut the sales tax rate from 6% to 5.5%, Smith said.



• Nearly $2 billion in higher income taxes, by implementing a graduated income tax with a new highest rate of 9.75% (compared to the current 4.35% for all wage earners), starting at $60,000 a year in income for single filers.