Sunday, October 31, 2010
Sense of Urgency for the State
Is it me or are you also feeling a lack of urgency by our state leaders that are about to take office after the election this Tuesday? Both Republicans and Democrats. There seems to be little concern or few suggested remedies for dealing with our huge fiscal crisis, our education crisis (K-12 drop out rate; poverty in schools, public employee health care costs, pension costs, and high cost of tuition for students in our universities, university graduation and completion rate, etc.)our local government crisis, etc., etc.. Where is the innovation, where are the solutions that should follow he outrage.
Choices for the New Governor
What are the top five things the Governor should try to do in his first 60 days in office?
Some should be able to accomplished by Executive Order versus legislation and some will need immediate action by the legislature.
Maybe the legislature should come into session and not leave until they get the state's fiscal problems resolved and put in place some solutions, some plans and/or some innovations for our state.
Some should be able to accomplished by Executive Order versus legislation and some will need immediate action by the legislature.
Maybe the legislature should come into session and not leave until they get the state's fiscal problems resolved and put in place some solutions, some plans and/or some innovations for our state.
New Governor's challenges in 2011 Facing the New Governor and Legtislature
Michigan's new governor must be ready on Day 1
By CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU CHIEF
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Michigan's new governor will take the wheel of a state that's speeding toward a $1.6-billion deficit with little room to maneuver.
He'll share the Capitol with perhaps the most inexperienced Legislature in modern times thanks to term limits, as well as a new secretary of state and attorney general.
He must hit the ground running with a team that will shape the way Lansing does business for the next four years.
Compared with eight years ago, when Jennifer Granholm swept into office on wings of hope and history as the first female governor, Michigan is shell-shocked by economic decline driven by the near-collapse of the U.S. automotive and financial sectors.
Republican Rick Snyder says he'll cut business taxes. Democrat Virg Bernero says he'll revive manufacturing. Either will tackle a government and tax system that can no longer coexist as they are.
"Without a doubt, the challenges facing the new governor are going to dwarf the problems any new governor confronted in the past," said Dennis Cawthorne, lobbyist, ex-legislator and Michigan devotee. "In the past, there have been nooks, crannies and cookie jars available to somehow fill the billion-dollar deficits.
"It truly appears this time we have run out of them."
Tough Tasks Await New Leader
A lot of big decisions await the next governor, starting the day after Tuesday's election.
He even should start planning his State of the State address in January, said Bill Rustem, president of Public Sector Consultants of Lansing.
"It's the articulation of a vision -- where does he want to take the state?" said Rustem, who was an adviser to former Gov. William Milliken.
"It's a brand-new Legislature. It's important setting the tone for the first 100 days, and for the administration beyond that."
But before the big speech, the next governor will have his hands full putting that administration together.
And scouting the Legislature, with whom he'll dicker and deal.
And making plans to tackle the worst financial picture in many decades.
The economy drowns out other issues that usually have more exposure in gubernatorial campaigns, such as the environment and funding for public schools, said Doug Roberts, a former state treasurer and now director of the Institute for Public Policy and Social Research at Michigan State University.
Read more: Michigan's new governor must be ready on Day 1 | freep.com | Detroit Free Press http://www.freep.com/article/201010310300/NEWS15/10310528#ixzz13xUjtoSl
By CHRIS CHRISTOFF
FREE PRESS LANSING BUREAU CHIEF
Comments (30) Recommend Print E-mail Letter to the editor Share
Single-page viewNext Page
1 | 2 | 3 | 4
Michigan's new governor will take the wheel of a state that's speeding toward a $1.6-billion deficit with little room to maneuver.
He'll share the Capitol with perhaps the most inexperienced Legislature in modern times thanks to term limits, as well as a new secretary of state and attorney general.
He must hit the ground running with a team that will shape the way Lansing does business for the next four years.
Compared with eight years ago, when Jennifer Granholm swept into office on wings of hope and history as the first female governor, Michigan is shell-shocked by economic decline driven by the near-collapse of the U.S. automotive and financial sectors.
Republican Rick Snyder says he'll cut business taxes. Democrat Virg Bernero says he'll revive manufacturing. Either will tackle a government and tax system that can no longer coexist as they are.
"Without a doubt, the challenges facing the new governor are going to dwarf the problems any new governor confronted in the past," said Dennis Cawthorne, lobbyist, ex-legislator and Michigan devotee. "In the past, there have been nooks, crannies and cookie jars available to somehow fill the billion-dollar deficits.
"It truly appears this time we have run out of them."
Tough Tasks Await New Leader
A lot of big decisions await the next governor, starting the day after Tuesday's election.
He even should start planning his State of the State address in January, said Bill Rustem, president of Public Sector Consultants of Lansing.
"It's the articulation of a vision -- where does he want to take the state?" said Rustem, who was an adviser to former Gov. William Milliken.
"It's a brand-new Legislature. It's important setting the tone for the first 100 days, and for the administration beyond that."
But before the big speech, the next governor will have his hands full putting that administration together.
And scouting the Legislature, with whom he'll dicker and deal.
And making plans to tackle the worst financial picture in many decades.
The economy drowns out other issues that usually have more exposure in gubernatorial campaigns, such as the environment and funding for public schools, said Doug Roberts, a former state treasurer and now director of the Institute for Public Policy and Social Research at Michigan State University.
Read more: Michigan's new governor must be ready on Day 1 | freep.com | Detroit Free Press http://www.freep.com/article/201010310300/NEWS15/10310528#ixzz13xUjtoSl
Wednesday, October 20, 2010
Money in Politics
Big money is flowing into the 1st Congressional District, UP and Northern Michigan, and into the SW Michigan congressional race between Schauer and Walberg. Makes you think about the old debate about limiting candidates to taking contributions from donors who live in their district-- and NO ONE else.
Monday, October 18, 2010
Slavery in America and Worldwide Human Trafficing
Ten million young people held against their will- in slavery in America according to a new study on worldwide human trafficking.
Twenty seven million people worldwide are traded in human trafficking worldwide-slavery.
800,000 people put into slavery across worldwide borders each year.
Slaves found in 90 US cities this year.
Human trafficking is a $32 billion worldwide industry.
Twenty seven million people worldwide are traded in human trafficking worldwide-slavery.
800,000 people put into slavery across worldwide borders each year.
Slaves found in 90 US cities this year.
Human trafficking is a $32 billion worldwide industry.
Coattails
Will either candidate for Governor have any "coattails" that might help elect their parties choice for Secretary of State or AG? might be important in the final vote count of these two offices. They each might need the coattails to carry them over the victory line.
Closing weeks of campaign
Look for more and more political advertising to occur in last couple of weeks of this election-and itnwill get nastier and nastier. Interesting that we are hearing less radio advertising this political season and more direct mail via snail mail and via email. Of course TV is still king. Citizen journalism is growing by leaps and bounds. Everyone with a cell phone can take a picture andnpost it on the web or use their flip camera to record behavior or actions of a candidate. No source checking, no ethical standards just a citizen posting a picture or video on the open source Internet .
Snyder and ideas for the state tax system
Rick Snyder wants to put a new spin on taxing business
BY DAWSON BELL
FREE PRESS STAFF WRITER
Rick Snyder's big idea for Michigan is audacious, if inexact. He wants Michigan to make a clean break from the old ways and reinvent itself. He sometimes calls it Michigan 3.0 (with 1.0 as the mine-and-timber era, and 2.0 as auto manufacturing).
So it may strike some people as curious that the centerpiece of his reinvention is an idea as old as the lumber barons -- a tax on corporate profits.
Snyder wants to replace the Michigan Business Tax, which he calls "the worst business tax in the country," with a 6% levy on corporate profits. The switch would result in a $1.5-billion tax cut for businesses.
In his policy statement on the subject -- virtually the only detailed policy prescription he has issued -- Snyder said his proposal will send the single, strongest possible signal that "Michigan is serious about turning around its reputation and becoming business-friendly again." He calls it "a simple solution ... that career politicians will not implement."
Snyder may be correct about the signal Michigan would send by scrapping the MBT. Certainly cutting taxes on business by nearly 60% will attract attention.
But if elected in November, Snyder is certain to find that nothing is ever simple in Lansing when it comes to business-tax policy.
A little history:
Michigan had a corporate income tax in the 1960s (the first corporate-profits tax nationwide dates from 1894). It was scrapped, along with a handful of other business taxes, in 1975, and replaced by the Single Business Tax.
The SBT, a modified form of the Value Added Tax unique to Michigan, was reviled and amended for most of its 32-year lifespan, before an L. Brooks Patterson-led petition drive put it down for good. In 2007, facing the loss of all that revenue and a huge budget deficit, Gov. Jennifer Granholm and the Legislature created the MBT, a modified form of gross receipts tax.
It is undeniable that the MBT and the SBT each contained controversial elements: One of the most galling to business owners was the requirement to pay taxes even when an enterprise is losing money.
[Page 2 of 2]
But that didn't happen because politicians set out to design a Frankenstein's monster of a tax code. It was because of the inherent complexity of business taxation.
LeAnn Luna, an associate professor of business at the University of Tennessee and expert on state tax policy, said arguments can be made on behalf of both of the principal forms of business taxation, gross receipts and corporate income.
Taxing gross receipts, or business activity as Michigan tried to do with the Single Business Tax, invites endless rounds of politically driven changes as favored industries seek special treatment, Luna said.
But simply taxing income has its drawbacks as well, as business owners try to game the system through reorganization (a corporate income tax, including Snyder's proposal, doesn't apply to businesses organized as sole proprietorships, partnerships or LLCs). Profits distributed as income from such businesses would be reported on the personal income tax forms of individuals -- who pay a maximum of 4.35%.
Taxing income also promotes other strategies about how a business operates in an effort to reduce profits subject to taxation, Luna said, creating economic inefficiency that curtails growth.
Snyder's plan could minimize those kinds of objections by reducing the number of business taxpayers who are required to pay state taxes and, more important, by delivering his $1.5-billion tax cut.
Gary Olson, director of the Senate Fiscal Agency, said it is likely almost every business taxpayer in the state would end up paying less if the state would forgo that much revenue.
"Would that be beneficial to business? Of course it would," Olson said. "But what do you do with the things you're spending the $1.5 billion on today?"
MBT revenue is a major source of funding for all manner of state operations, like prisons and universities, as well as contributing nearly $750 million a year to K-12 schools.
Snyder spokesman Bill Nowling said those questions would be addressed after a thorough and ongoing examination of state finances. Snyder said he believes significant savings can be found by re-examining every operation in state government.
If elected, Snyder's first priority will be the reorganization of government and business tax reform as soon as possible, he said.
"It's an issue of creating jobs. We need to have a competitive tax structure," Nowling said. "We know people are skeptical. That's OK. Rick thinks it's the best thing for Michigan."
BY DAWSON BELL
FREE PRESS STAFF WRITER
Rick Snyder's big idea for Michigan is audacious, if inexact. He wants Michigan to make a clean break from the old ways and reinvent itself. He sometimes calls it Michigan 3.0 (with 1.0 as the mine-and-timber era, and 2.0 as auto manufacturing).
So it may strike some people as curious that the centerpiece of his reinvention is an idea as old as the lumber barons -- a tax on corporate profits.
Snyder wants to replace the Michigan Business Tax, which he calls "the worst business tax in the country," with a 6% levy on corporate profits. The switch would result in a $1.5-billion tax cut for businesses.
In his policy statement on the subject -- virtually the only detailed policy prescription he has issued -- Snyder said his proposal will send the single, strongest possible signal that "Michigan is serious about turning around its reputation and becoming business-friendly again." He calls it "a simple solution ... that career politicians will not implement."
Snyder may be correct about the signal Michigan would send by scrapping the MBT. Certainly cutting taxes on business by nearly 60% will attract attention.
But if elected in November, Snyder is certain to find that nothing is ever simple in Lansing when it comes to business-tax policy.
A little history:
Michigan had a corporate income tax in the 1960s (the first corporate-profits tax nationwide dates from 1894). It was scrapped, along with a handful of other business taxes, in 1975, and replaced by the Single Business Tax.
The SBT, a modified form of the Value Added Tax unique to Michigan, was reviled and amended for most of its 32-year lifespan, before an L. Brooks Patterson-led petition drive put it down for good. In 2007, facing the loss of all that revenue and a huge budget deficit, Gov. Jennifer Granholm and the Legislature created the MBT, a modified form of gross receipts tax.
It is undeniable that the MBT and the SBT each contained controversial elements: One of the most galling to business owners was the requirement to pay taxes even when an enterprise is losing money.
[Page 2 of 2]
But that didn't happen because politicians set out to design a Frankenstein's monster of a tax code. It was because of the inherent complexity of business taxation.
LeAnn Luna, an associate professor of business at the University of Tennessee and expert on state tax policy, said arguments can be made on behalf of both of the principal forms of business taxation, gross receipts and corporate income.
Taxing gross receipts, or business activity as Michigan tried to do with the Single Business Tax, invites endless rounds of politically driven changes as favored industries seek special treatment, Luna said.
But simply taxing income has its drawbacks as well, as business owners try to game the system through reorganization (a corporate income tax, including Snyder's proposal, doesn't apply to businesses organized as sole proprietorships, partnerships or LLCs). Profits distributed as income from such businesses would be reported on the personal income tax forms of individuals -- who pay a maximum of 4.35%.
Taxing income also promotes other strategies about how a business operates in an effort to reduce profits subject to taxation, Luna said, creating economic inefficiency that curtails growth.
Snyder's plan could minimize those kinds of objections by reducing the number of business taxpayers who are required to pay state taxes and, more important, by delivering his $1.5-billion tax cut.
Gary Olson, director of the Senate Fiscal Agency, said it is likely almost every business taxpayer in the state would end up paying less if the state would forgo that much revenue.
"Would that be beneficial to business? Of course it would," Olson said. "But what do you do with the things you're spending the $1.5 billion on today?"
MBT revenue is a major source of funding for all manner of state operations, like prisons and universities, as well as contributing nearly $750 million a year to K-12 schools.
Snyder spokesman Bill Nowling said those questions would be addressed after a thorough and ongoing examination of state finances. Snyder said he believes significant savings can be found by re-examining every operation in state government.
If elected, Snyder's first priority will be the reorganization of government and business tax reform as soon as possible, he said.
"It's an issue of creating jobs. We need to have a competitive tax structure," Nowling said. "We know people are skeptical. That's OK. Rick thinks it's the best thing for Michigan."
The New Governor
What are the three "innovations" that we would want a Governor to make to bring Michigan back to economic and fiscal health?
Lift the cap on charter schools and get more children at risk into a school setting so we can make sure that they do not become a drop out statistic?
We know that states that have high economic growth and job creation have high rates of people with college degrees. Shall we say to Michigan residents who do not have a degree that if you give the state two years of public service (teaching in an inner city or rural district with children at risk; working in community to help poor people develop job skills; etc.,) we will give you one year of free tuition at a Michigan university?
Take our highway rest stops and allow private businesses to lease them and run a restaurant or snack bar in them--they become responsible for maintaining the land, cutting the grass, plowing the snow, etc., etc.. No state money spent on rest stops.
What other innovations do we our next Governor to think about?
Lift the cap on charter schools and get more children at risk into a school setting so we can make sure that they do not become a drop out statistic?
We know that states that have high economic growth and job creation have high rates of people with college degrees. Shall we say to Michigan residents who do not have a degree that if you give the state two years of public service (teaching in an inner city or rural district with children at risk; working in community to help poor people develop job skills; etc.,) we will give you one year of free tuition at a Michigan university?
Take our highway rest stops and allow private businesses to lease them and run a restaurant or snack bar in them--they become responsible for maintaining the land, cutting the grass, plowing the snow, etc., etc.. No state money spent on rest stops.
What other innovations do we our next Governor to think about?
Elections
Two plus weeks and we will move from uncertainty to certainty on election day. Who knows we might even have a few elections where we won't have certainty at the close of election day--vote counting delays and recounts could hold us up. Voters are good at throwing monkey wrenches into what the "experts" predict. Might we have some surprises on election day?
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