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NAVIGATION
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Things look messy but help might finally be on the wayBy Nick, Section News
Remember that old adage that when the nation gets a sniffle Michigan gets a cold? The United States a cold the Great Lakes State the flu? During the 2006 campaign I lost count of how many times I heard the warning that without a change in leadership, without a swift kick in Lansing's pants we stood on the brink of missing an entire national economic recovery. That lingering in a prolonged one-state recession was pretty rotten but wasn't the tip of the iceberg should things get worse nationally.
Exhibit A. The Associated Press reported a few hours ago on the latest auto sales figures, probably the number one market number affecting Michigan's jobs outlook. And the results:
It was Ford's worst sales month this year, and the results across the industry are a strong indication that the financial turmoil that has swelled since mid-September is pushing the auto industry deeper into its trough...
George Pipas, Ford's top sales analyst, said nearly all automakers saw "extremely weak" sales in the waning days of the month as the Wall Street crisis grew and Congress debated the government's $700 billion bailout of the financial industry.
"It was tantamount, really, to a natural disaster," he said. All of this dropping the same evening the United State Senate counted Michigan Senator Carl Levin among those supporting a $700 billion spending spree using taxpayer cash to buy up bad debt. This ain't pretty folks, and it ain't looking any brighter for us locally without serious changes in Lansing. Which brings us to a smidge of good news on an otherwise bleak financial morning. Read on...
Senate Republicans stand this morning on the verge of taking a serious bite out of both the reviled Michigan Business Tax and Jennifer Granholm's Hollywood Relocation Program. The Detroit News reports:
Republican leaders also want to cap the state's new film tax credit and make the overall business tax more fair and balanced by removing from the calculation of gross receipts sales tax collections and fees assessed by other states. To include these items in the tax base amounts to double taxation, critics charge...
Senate Finance Committee Chair Nancy Cassis, R-Novi, contends the new tax is bringing in more revenue than advertised and is hurting Michigan's economy at the worst possible time.
"What we have with this new tax is a plan to sink Michigan to the bottom," Cassis said. "We're talking about systemic reforms that put Michigan businesses back in position to create jobs." Sure, it would have been nice to see this sort of thing a few months ago, or better still if we were never in this position in the first place. But alas, we are, and unless you've got a way-back machine moth-balled in your garage there's no sense in rehashing the failures of the past. We live in the here and the now. It's October 2, 2008 and we have an onerous Lansing tax policy that continues to drive jobs out of the state. A wise man once told me that in the face of adversity, especially adversity of one's own making, and who made this mess if not Lansing, the question isn't "what mistakes were made in the past" but "what is the next right thing to do?" You course-correct. You identify mistakes and you fix them. The Michigan legislature approved a $1.5 billion tax hike last fall. Fix it. Michigan voters gave Democrats a sweeping majority in the state House last election. Fix it. Andy Dillon is the speaker of the House and the driving force between just about every piece of rotten policy coming out of the state capitol. Fix it. Well, actually, there are still a few folks working on that one. The Ivory Tower chimes in this morning with a guest commentary on the strength of the Dillon recall in the broader context of... we'll call it legislative motivation.
Translation: Lansing, you made a mess. Fix it. Or else.
Things look messy but help might finally be on the way | 8 comments (8 topical, 0 hidden)
Things look messy but help might finally be on the way | 8 comments (8 topical, 0 hidden)
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