Making Michigan More Competitive

200825Oct

A few weeks ago I wrote in the Detroit Free Press that we need to chart a uniquely Michigan Path to Prosperity instead of copying the strategies of other states. One pillar of the Michigan strategy is to reduce the cost of doing business.

Let's face it, we need to do something bold to jump start our economy.  Here are some ideas we should be thinking about:

  • What if we adopted all the suggestions proposed in a Public Sector Consultants report we recently released and eliminate the MBT surcharge?
  • For the cost of revenue we appear to be giving up to lure temporary film production work, we estimate the state could practically make Detroit a tax free zone for new business investment.  Wouldn't this have a greater economic impact? 
  • What if we recognize the MBT isn't much better than the SBT it replaced and get serious about designing a new business tax system that really makes Michigan competitive?
  • What if we required a fiscal note for every new regulation proposed by a state agency or the legislature that increases the regulatory burden on business?  Better yet, what if we placed a moratorium on all new regulation and conducted a statewide audit to peel back some already in place?
  • What if we adopted serious incentives for school district and local government consolidation and disincentives for failure to consolidate to reduce costs so that we can enable a more competitive tax structure?

Any of the above actions would immediately get national attention and increase business confidence in our state.  Why not get started right now?