GOP lawmakers must fix flaws in economic plan

The Flint Journal correctly labels the GOP’s economic plan “unacceptable” and “half-baked.” However, the originally reported deal between Governor Granholm and Republican leaders was destined for failure because it did not address the basic problems facing Michigan. The business climate in this state places it near the bottom in many economic categories but most notably job growth. Businesses are not locating nor expanding in our state for several reasons.

First, high taxes drive business away. The Single Business Tax needs to be eliminated this year, not in 2010, and replaced with spending cuts rather than new taxes. For several years the Mackinac Center, a free market think tank in Midland, has proposed a number of ways to reduce spending and generate revenues through the sale of non-essential assets. Given the state’s budget problems, we really can’t afford to waste money on corporate welfare and “cool” cities.

In addition to lowering taxes and cutting expenditures, our elected officials could attract employers by

- subjecting all regulations to a rigorous cost/benefit analysis;
- improving education through more parental choice;
- deregulating the telecommunications and electricity markets and opening them to innovative technologies that can drive our high costs below the national average; and
- passing a right-to-work law to make our labor market competitive with other states.

For the sake of Michigan’s families, the state legislature and the governor need to implement these reforms today. If we wait until 2010, half-baked schemes will be the least of our worries since Michigan’s economy will be fried.

[Letter to the Editor - The Flint Journal - Submitted 11/15/2005]