The first bill introduced to Michigan state legislation this year is to repeal the 21.99% surcharge placed on businesses in 2007. The surcharge is believed by many to be a "job killer." According to Jackie Headapohl of the Kalamazoo Gazette:
(http://www.mlive.com/jobs/index.ssf/2011/01/bill_to_repeal_surcharge_on_the_2007_mic.html#incart_hbx)
The Mackinac Center said their data shows the repeal of the surcharge would create more than 8,300 new jobs in the first year. "Greater investment and employment would positively compound each year thereafter and employment would increase by 27,900 by the end of 2016," the organization said.
This sounds like to easy of a fix to me. What, if any, other policies do you think could contribute to job creation in Michigan?
Is repealing this business tax to good to be true? The Mackinaw Center is legitimate and I don't believe would make such extreme claims if they did not have significant truth? Nevertheless, if the tax was repealed, more jobs would be created, but what would happen with the tax revenue?
ReplyDeleteThis is all based on the assumption that businesses WANT to come to Michigan. There has to be an employment base of qualified people here that they want to hire. There also has to be a demand for a product or service. It also doesnt say what kinds of businesses are likely to come. This bill is a start, but, like everything else, it comes with trade-offs. If we eliminate this tax, then we also eliminate the revenue it creates too. Michigan is already in the red where the budget is concerned, and unless there are some spending cuts to go with this, I think it will be detrimental in the short run. Job creation is great if we are creating good, decent paying ones. Michigan has to be selective in the businesses that it allows in, and not just take a "better than nothing" firm.
ReplyDeleteIf repealing the Michigan Business Tax surcharge will really bring more jobs to Michigan, then great, let’s do it. With Michigan’s high unemployment rates, I think job creation is a top priority for the state. This would likely cause the state to need to cut down on its budget, but where the cuts should be made: I am not certain. Other policies that could help with job creation include an investment fund from the government that will provide capital to businesses that agree to grow jobs in Michigan as well as a fund for the marketing and promotion of Michigan to job-growing business leaders as well as economy-boosting tourists. Also, there is a film incentive to companies that bring their productions, and thus more jobs, to Michigan. I know this film incentive offers fairly substantial tax rebates to these companies. I’m not sure if the benefits of job creation outweigh the cost of these tax rebates or not, but in the end it is an option that would provide jobs to Michiganders.
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