Political News and Commentary with the Right Perspective. NAVIGATION
  • Front Page
  • News
  • Multimedia
  • Tags
  • RSS Feed


  • Advertise on RightMichigan.com


    NEWS TIPS!

    Get the RightMighigan.com toolbar!


    RightMichigan.com

    Buzz

    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Michigan: Leadership or a funeral? A Choice for Republicans


    By Republican, Section News
    Posted on Wed May 06, 2009 at 01:53:45 PM EST
    Tags: MBT, SBT, Republicans, Legislature (all tags)

    Consider this article a brief letter and call to all Michigan Rebublicans and citizens in general.  We absolutely must do better than this!

    As a former legislative staffer and now as a professional whose livelihood is (very unfortunately) tied to Michigan's economy, I've watched with dismay as our economy has tumbled well beyond the scope of the national recession.  I've been further dismayed by the ineffective, jumbled, sometimes disinterested response of our state government and "leaders" in Lansing.

    Remember the old Michigan saying that came from the dark days of the 80's recession: "last one to leave Michigan turn the lights out?"  I remember my days in the legislature, and how Republican elected officials loved to boast almost daily as to how Gov. Engler saved this state from that all but too certain death (leaving aside, for the moment, whether this accolade is deserved).  Yet, today's Gongwer Report (www.gongwer.com)highlights how much worse Michigan's condition is today by discussing the state budget:

    "The severity of [the] crisis was highlighted by Treasurer Bob Kleine, who said that revenues fell by 11 percent, when adjusted for inflation, in 1981, during the last cataclysmic economic recession the state endured.  In 2009, revenues, adjusted for inflation, have fallen by 23.5 percent, he said."

    Hmmm.  More than twice as bad last time the state was actually going to "close"?

    And yet, the legislature ineffectively bumbles its way through "fixing" the SBT such that the MBT -- a tax that is just as bad or worse by all accounts is put in its place.  I've personally heard about companies whose tax loads have increased two, three, even six fold.  I've been assured by prominent real estate developers I work with that the cranes in West Michigan will soon disappear, headed for greener lending pastures to the South.

    Michigan, depending on the survey, is either the 48th, 49th, or 50th LEAST hospitable state for businesses to locate and operate due to the high cost of business (taxes) and heavy unionization businesses will find here.

    This is an immediate crisis -- a dire emergency.  This state must become attractive to businesses and the jobs that come with them NOW.

    And lest the skeptics cry corporate welfare, understand that whatever you call it, if there are no jobs, there are no incomes; there are then no revenues, no home sales, no auto purchases.  Michigan is in a perfect storm of failure brought about (in some cases) by factors out of our control; but mainly brought about by a vacuum and void in leadership.

    Forbes recently analyzed the prospsects for Michigan.  Proudly, our cities top the "worst cities for jobs" nationally.  See www.Forbes.com, Joel Kotkin, "Worst Cities for Jobs" April 28, 2009 at http://www.forbes.com/2009/04/27/worst-cities-jobs-opinions-columnists-employment-opportunities.html .  Mr. Kotkin highlights what has been nagging me in the back of my mind and making me feel uneasy about the prospects for a comeback-- there is nothing on the horizon that is going to fix this state.  While we are in a national recession, and everyone is hurting, the United States will come back.  Michigan will not, because the fundamentals are still bad: hostile business environment, high taxes, unionization, undesirable climate, etc.

    We are doomed to this fate unless our leaders actually do something drastic and do it fast.  So, Republicans:  No more meaningless resolutions on abortion; No more committee meetings worrying about legislative minutiae; No more Joe the Plumber.  Get to work -- lead.  There is one issue that must be addressed right now, or it will be too late to turn Michigan around.

    Republican Legislators (and all legislators for that matter):

    1)  Get in your car;  2)  Drive to the capitol building; 3) Go inside (we'll keep this simple); 4) Draft a corporate tax and incentives bill that takes Michigan from the 48th-50th worst state in the nation to the very top of the heap; 5) Refuse to leave the capitol or to take up any other business until that bill is passed and signed.

    It sounds simple when you think about it.

    < Harsh interrogation - A case study | Be Ready >


    Share This: Digg! StumbleUpon del.icio.us reddit reddit


    Display: Sort:
    I'm With You (none / 0) (#1)
    by wctaxpayer on Thu May 07, 2009 at 01:05:09 PM EST
    You have said it before. I have said it before. Thousands have said it before. They are deaf! I have to believe that most of them are stupid or just don't care. I just can not justify any other reason why they would stand and watch this beautiful state wither into economic oblivion.

    If we can not convince them to act soon, it will be like walking through a desert without water and it will take us a very, very long time if we miss the national recovery.
    Rose Bogaert, Chair Wayne County Taxpayers Association, Inc.

    Taxes and Incentives (none / 0) (#2)
    by stevenstmason on Thu May 07, 2009 at 10:51:51 PM EST
    Everyone says that government shouldn't be picking between winners and losers. But you can't find one Lansing Republican who has voted "no" when it comes to a tax break for their favorite industry or a tax abatement for their favorite campaign contributor. We're told that we have to have tax breaks for a competitive business environment. But it's these tax breaks and tax abatements that make our tax environment so complex. Here's an easy solution, one so simple that no politician will adopt it because it will cut off their supply of campaign contributions:

    1. Eliminate all exemptions and credits from the Michigan Business Tax including those that exclude small businesses from the MBT.  

    2. Eliminate all property tax abatements and exemptions.

    If you do #1 and #2, you'll have a much broader tax base which will then allow the business tax rate to be reduced to a level where Michigan's business tax rate will be far less than any other state. The politicians and accountants will hate it but this simplified system will bring accountability and simplicity to the tax code.

    • Are you kidding? by jgillmanjr, 05/08/2009 12:16:33 AM EST (none / 0)
      • MBT by stevenstmason, 05/08/2009 06:56:19 AM EST (none / 0)
    • Fair Tax by stevenstmason, 05/09/2009 12:23:13 AM EST (none / 0)
      • Lame by stevenstmason, 05/10/2009 01:09:35 AM EST (none / 0)
      • Really . . . by Kevin Rex Heine, 05/12/2009 10:00:56 PM EST (none / 0)
    Display: Sort:

    Login

    Make a new account

    Username:
    Password:
    Tweet along with RightMichigan by
    following us on Twitter HERE!
    create account | faq | search