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Tag: Labels: Economics

What A Fix I Am In

By wctaxpayer, Section News
Posted on Mon Jun 01, 2009 at 04:53:37 PM EST
Tags: Labels: Economics, General Motors, Governor Granholm, Michigan Economy, Michigan Lobbying, Michigan Politics, Proprety Taxes, taxes, Wayne County Michigan (all tags)

Monday, June 01, 2009

I am conflicted. As a resident of Wayne County I know that I should be doing everything I can to encourage business to stay and flourish in Wayne County. As I have just become a major stockholder in GM, I now have other considerations to take under advisement.

Right now Detroit and Warren are having a disagreement over where the Headquarters of General Motors should be located. First lets look at the taxes. Mayor Bing and Executive Ficano are proposing a tax free zone for the Renaissance Center. While, Th City of Warren has offered a 30 year abatement if GM moves its headquarters to the GM Tech Center.

If lower taxes are good for GM, why are they not good for everyone else. The small businesses that will suffer or be put out of business because of the automotive downsizing are sure to need propping up. There is also the average taxpayer who must pick up the burden for the hole in revenue left by breaks to business. I know, as consumers they we are paying them anyway, but somehow if you don't pay them directly they seem less harmful and there is still the possibility that they will not pass the brake on.

Then there is the employees. Would they rather go to Downtown Detroit and pay a fortune for parking or park in the huge parking lot at the Tech Center? If they wish to live near work, would they rather live in Detroit with poor services and poor schools or in Warren were schools and services are not so bad and their spouses will not have to pay the 2.5% resident income tax, if they work?

How about property values? Would you rather invest in housing which will continue to decline under present tax rates and exiting population or property which is likely to appreciate in the future? The Detroit News has given you an opportunity to vote on the question of whether they should stay in Detroit or move to Warren. I am torn. It isn't easy being a business owner in Michigan.

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