The last week of June saw
the new fiscal year budgets sent to the Governor for approval. There were no major structural reforms in
this year’s budgets to justify the $1.4 billion in Democrat tax increases of last year. Not only do the budgets perpetuate
the structural spending problem in Lansing, they send $4 million in additional revenue-sharing funds to Detroit and their
embattled mayor, despite only sending a 2 percent increase for schools, police and fire departments over the last two years.
What matters most to your family and your community?
Money to Detroit or money for your schools? Local police and fire departments, or Kwame’s scandal?
Without serious government reforms, Michigan
is in line for yet another tax increase, and is looking at a $500 million deficit next year.
Michigan’s
families deserve bold leadership. These budgets prove that Michigan also needs new leadership who will focus on property tax
and income tax relief.
Also, high taxes adversely affect our state’s economy. All other things being equal, states that have high
taxes create less wealth and experience lower rates of economic growth.
Take, for instance, the Michigan Business Tax, an attempt at reform from the old Single Business Tax
model, then thrown out the window when a 22% surcharge was added to help create the $1.4 billion dollar tax increase we saw
last year.
High business taxes deter business
investment and entrepreneurship in Michigan. This high tax burden will continue to drive manufacturing jobs – including
automobile manufacturing – out of the state and into lower-tax, lower-regulation states, while also discouraging high
value-added service jobs in sectors like finance and information technology from locating in Michigan. Given the economic
woes facing Michigan, high taxes, both business and personal, stand in the way of any economic recovery we can hope for here
in Michigan.
OK, that’s the problem.
What, you may ask, are the answers? I believe that there are many ways to turn this state around; today I would like to discuss
one that is high on my priority list, and one that I believe needs to happen NOW.
The new leadership in Michigan needs to start the
new term focusing on establishing an EFFECTIVE, EFFICIENT & ACCOUNTABLE GOVERNMENT.
For Michigan to maximize the amount of tax
dollars devoted to our most distinctive and competitive assets, our public sector must be nimble, thrifty, and accountable.
State and local government, schools, and higher education must maximize efficiency to assure sustainable funding for
Michigan’s most pressing and strategic future needs. Public institutions must better serve people and embrace change.
Citizen involvement must be encouraged as essential for effective and accountable government. Here is how this should be accomplished;
Establish Accountability & Bipartisan
Leadership
We need to increase political accountability so that Michigan can rely on experienced, strategic, competent, and
decisive leaders in elected offices. Leaders willing to set aside traditional party politics to craft and
implement bipartisan strategies to move Michigan forward.
Clear Taxing & Spending Priorities
Establish a new “public purse”
a tightly focused, long term, sustained taxing and spending strategy. Top spending priorities: education,
economic development, marketing our state to the world, and quality of life investments in arts and culture, natural resources,
health and safety. Michigan must continually asses and modernize its tax structure to maximize and sustain
those public investments that are crucial for the states competitiveness in the global economy.
Establish Government Collaboration &
Service Sharing
We must increase collaboration and service sharing among Michigan’s hundreds of school districts and local
government units. Tax revenue sharing and state laws should reward collaboration, service sharing, efficiency,
and best practices.
These
are just a few of the strategies that need bold new leadership to implement. The old adage that “nobody
likes change” should be sent packing, and the new adage, “embrace change” should be our state’s mantra.
Michigan is at a cross roads of sorts. Either we elect new leadership and embrace change, or we
sink further into the economic abyss we currently find ourselves in.
Please remember to vote in the August 5th primary, hopefully I will see you at the campaign
victory party August 9th.
