Sunday, November 13, 2005

In Lansing, they shout: 'Lights, camera, inaction!' It's time to pass tax breaks for filmmakers

In reference to the package of tax breaks for filmmakers, The Ann Arbor News is absolutely correct by stating “Michigan can do better than that.” Rather than grant breaks to a single special interest group, the state should lower taxes for all businesses. Instead of trying to promote one industry at the expense of others, the legislature needs to remove barriers for all businesses looking to locate or expand in Michigan.

For some reason, once politicians get elected they believe they have acquired extra-sensory powers allowing them to pick which businesses will bring riches to the state. Of course reality is much different.

In 1998 and 2000, Michigan provided K-mart with millions of dollars in tax credits and other aid. In 2001, K-mart filed for bankruptcy and began laying off employees. Then in 2004, K-mart merged with Sears resulting in the transfer of K-mart’s headquarters to Illinois. Another example of the state’s investment prowess occurred in 1999 when the state offered Webvan, a rising Internet e-grocer, millions of dollars. Fortunately, Webvan went out of business before collecting any of our tax dollars.

In order to stop our slide to the bottom, the state government must make Michigan attractive to all businesses. This can be done by cutting taxes, reforming education, and removing regulatory obstacles. Although none of these actions brings as much attention as a Hollywood star, they will bring growth and prosperity.

[Letter to the Editor - The Ann Arbor News - Submitted 11/13/2005]

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