Tax cuts impact revenue and revenue drives the budget process. This is all part of the Michigan budget process for this year and is part of restructuring Michigan government. Not the first call for restructuring and not the last you will see in the coming months.
Michigan manufacturers call for tax slash | freep.com | Detroit Free Press
Wednesday, January 19, 2011
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This was a very interesting article.
ReplyDeleteI was unaware that manufacturing still remains the "largest segment in Michigan's economy, at 17%". At the end of the article it is stated, “Slash and burn is not our approach, but we’ve got to get creative about how we make Michigan businesses, and particularly manufacturing, competitive in the global economy.”
It is obvious that the only way to remain in or to increase competition in Michigan among manufacturers nationally and internationally would be to make Michigan an attractive place to manufacture. It is not very attractive when manufacturers have pay 29% higher overall business taxes than anywhere else comparably in the United States.
If Governor Snyder does not plan on cutting these taxes for manufactures, than he should maintain or extend the tax breaks for businesses coming into Michigan, or else there is really no incentive for new business to be here in Michigan.
It will be interesting to hear what comes out of the state of the state address. I have a feeling there will be more generalized, across the board taxing than targeted taxing or cutting - and hopefully a restructuring.
I agree with Amber: Michigan's taxation policy must be restructured. I too was unaware that Michigan has 29% higher business taxes than any state. And we wonder why we've been in a perpetual recession!
ReplyDeleteI hope that Governor Snyder takes the hard road to recovery. I hope that he really does take the long term into account. We need to down size the government: Spending cuts, deregulation, then systematic tax cuts. We got to bite the bullet now- in the short term this is going to hurt. The long term plan to success, or innovation as Snyder calls it, resides in Michigan's capacity to stimulate business and industry. Government ought to act accordingly.
I also agree that Michigan needs to revamp its taxation policies for businesses. I think Mike Johnston made a good point when he said, ..."
ReplyDeletewe’ve got to get creative about how we make Michigan businesses, and particularly manufacturing, competitive in the global economy.” Michigan needs to allure to other businesses and companies so that companies actually want to start up in Michigan. It seems that businesses are leaving MI or just dying because they aren't making a profit. MI needs jobs and one way to create jobs is by creating new businesses. A company isn't going to locate to a state where they pay more in taxes. MI needs to think smart and find a way to make it profitable for companies to open locations here and to keep their companies and prices competitve with other states and products.