President and CEO of Middle Michigan Development Corporation Brain Anderson said the elimination of the MBT is both negative and positive, depending on who it’s affecting.

The transition would equal a $1.8 billion tax cut, affecting around 95,000 companies that pay taxes through their personal income tax return. These small businesses will no longer have to pay business taxes.

The new plan is thought to energize the economy and create jobs, according to a report from michigan.gov.

“For Class-C businesses, shifting to a flat tax is a tax increase in a lot of situations,” Anderson said.  “There’s a little bit of negative feedback.”

But on the other side, a flat tax makes it easier for credit situations, he said, and it may be a higher cost, but it’s more simplistic.

For Class-S businesses, things are more cut and dry for a flat tax. The small businesses that fall under the class will have a tax break, he said.

“It is a simple, straight-forward tax,” he said. “It’s going to help people because they will have much more time to operate, instead of trying to figure out their taxes.”

Even though it’s much more simplistic in the long-run, people always have a hard time adjusting to change, he said.

“People need to realize change could be a good thing.  If anything, it may be a short-term pain of learning the new system,” he said. “We need to embrace change.”

Anderson said the new flat tax puts Michigan in the lowest tax bracket sales in America. When companies are deciding where to locate, there is a lower cost of doing business in the state.

“From what I’m hearing, people are embracing the new tax system and are actually looking forward to it,” he said.

Some businesses are unaware of the change and whether it applies specifically to them.

“There’s a lot of media around it,” he said. “They will know once they start doing taxes.”

Thomas Raymond, owner of Tom’s Professional Accounting Services, 504 N. Main St., said the shift to a 6-percent corporate flat tax will be fairer than the MBT.

“Whatever business brings in, whether self-employed or a corporation, everybody is getting taxed instead of just the big companies,” Raymond said.

Previously, the MBT only targeted businesses that made more than a $350,000 net profit per year, he said.  Now, everyone gets taxed.

“If we are looking at it from a business point, everyone should be taxed,” he said. “They do it at the federal level, so they should do it at state.”

Nathan Inks/Columnist

On Wednesday, Governor Rick Snyder gave his second State of the State address—as usual, the Governor painted a sunshiny picture, while the Democratic response painted a gloomy picture, and pundits criticized the speech for lacking details.

Ultimately, it is hard to go into much detail in a short speech, and the State of the State is not supposed to be a speech of details.

That being said, Snyder had some missed opportunities. By not going into the details of the Emergency Financial Manager law, he failed to address false criticisms that it is based in racism or union-busting, and while the new law is flawed, the flaw is in its implementation, not its purpose.

Details on K-12 and higher education funding would have been nice to include, even if it was just a general outline. On the other hand, Snyder nailed the issue on the head when he said we need to make sure people are “not just college-ready but career-ready,” emphasizing the importance of vocational schools.

Snyder also summarized what his administration has accomplished: overseeing the state during a 1.9-percent drop in unemployment (larger than the national average), passing a budget on time, repealing the Michigan Business Tax and reforming government transparency.

He also stressed that more work still has to be done. The road funding formula is 61 years old, and he wants to change that, saying, “The state cannot afford to neglect the health of our infrastructure.”

Snyder addressed two transportation issues with southeast Michigan. The first was the need for a regional public transit system, something long overdue in Metro-Detroit.

The second issue is a bit more controversial: the Detroit River International Crossing—a second bridge from Detroit to Windsor. Legislation for the bridge has failed to make progress in the Senate, and the project has stalled for the moment. Snyder encouraged the legislature to move forward with the project, citing “it’s not a bridge issue; it’s a jobs issue,” and special interests should not get in the way.

While catchy, the line he used was flawed, since it is more than just a jobs issue. That being said, we can go forward with this project without taxpayer dollars, and it will both bring revenue into the state as well as ease congestion at the border crossing, so the time has come for the legislature to move forward with the project.

The last main point was that government’s “role is not to create jobs but to create an environment that creates job creation.” This is an area his administration has had success in, but more work can be done, especially eliminating pointless regulations, several of which he highlighted.

Overall, the speech was a good one, even if it was lacking in a couple key areas; Snyder did a good job of highlighting accomplishments as well as goals for the coming year, and hopefully the state can continue its path to recovery.

But Maxine Berman, Griffin Endowed Chair and Gov. Jennifer Granholm’s director of Special Projects, said there are other problems which should not be overlooked.

“I’ve never seen an election where the economy isn’t a big issue, but voters would be remiss in not expecting candidates to talk about other major issues,” said Berman.

She said higher education, K-12, the environment and corrections are all also integral to this campaign season.

An EPIC/MRA poll of 600 likely voters was conducted Oct. 23-26. It gave Republican Ann Arbor businessman Rick Snyder 55 percent of the vote, and Democrat Lansing mayor Virg Bernero 37 percent of the vote.

Another EPIC/MRA poll names the economy as the most important issue to 58 percent of 600 likely voters, followed by education and funding for public schools.

Economy

Bernero dubbed his platform the “Main Street Agenda.” His “Make it Michigan for Free” initiative abates taxes for businesses for 12 years if they make older buildings viable. He wants to create a “Main Street Bank” to free up capital for small business.

He and Snyder both want to eliminate the Michigan Business Tax.

Snyder would replace it with a 6 percent corporate tax, said his campaign spokesman, Bill Nowling. Small companies, currently taxed at 1.8 percent, would be exempt from the tax and not be charged the alternative profits tax.

Higher Education

Bernero wants to freeze tuition at Michigan’s public universities.

“The governor puts together a budget for the universities (through state funding),” he said, in an interview with Central Michigan Life. “I believe we can pressure the universities and university presidents to do the right thing.”

Bernero said he would search for spirited people with education expertise representing the geographic and demographic diversity of the state to serve on university boards.

Nowling said Snyder wants to look the value of the money taxpayers are sending to higher education.

“How do we provide exceptional value, for whatever service, at the best possible price?” he said. “We have to make sure we hold colleges and universities accountable to students and taxpayers for the amount of money they pay. The legislature appropriates money to the universities, Rick’s going to make sure we’re providing exceptional value for the students.”

Merit is the single most important criteria in Snyder’s appointments to university boards.

“People who understand the issues of higher education and actually have value,” Nowling said. “I’ve been on multiple advisory boards of colleges and universities, so I know how important it is to get good advisers.”

Environment

Bernero supports green transportation and protecting the Great Lakes from Asian Carp, offshore drilling and water diversions. Bernero said he will make investments in energy efficiency, increase the use of solar and wind technologies and reduce reliance on coal.

Bernero wants to compete internationally with green technology.

“We have some of the most technologically advanced plans in the world. We need to support them with appropriate trade policy,” he said. “China is putting in hundreds of millions of dollars regularly, they figure green energy is the next oil … we don’t want to be dependent on China or any other country for green energy.”

The environment is one part of Snyder’s 10-Point Plan.

“(Snyder) believes that protecting the environment and growing the economy can be done simultaneously. Michigan needs to be a leader in the innovative movement towards alternative and cleaner energy,”  Nowling said.

Corrections

Bernero said the state’s corrections department is a misnomer because “we’re not correcting much – we need a complete overhaul.”

He would like every inmate to leave with a diploma, degree or skill. If there are non-violent mental health, drug or addiction issues, Bernero would like to divert them from coming into the system.

Snyder also wants to deter people from entering the corrections system and if they do, have them leave as productive members of society, Nowling said.

“We need to look at the cost associated with (corrections),” he said. “Michigan spends more per inmate than any of the other state. We need to see if we can’t find some efficiencies in the situation.”

Health care

Bernero wants to increase access to care and nutrition at the school level so children can develop good habits when they are young.

Snyder also wants to emphasize prevention.

“We need health care reform on how we provide services, it got too tied up in the insurance market,” Nowling said. “I’m focused primarily on what we can do in Michigan, what we can do for Medicare and Medicaid.”

The economy here was bad before the nation fell into a recession, and when things got worse around the country, they got especially bad here. Politics as usual failed the state, and it is time to bring a fresh perspective to government.

Rick Snyder is the person to bring that fresh perspective.

Michigan needs someone with a background in business to understand what the government needs to do to make Michigan appeal to businesses. When Forbes magazine ranked the best states for business, Michigan came in 49th place. This is unacceptable and without major changes, Michigan will not recover.

The first step in rescuing Michigan is to make our state more attractive for businesses. Rick Snyder will do this by accomplishing two things: reforming our regulatory system and reforming our tax system.

Snyder will streamline the regulatory process as well as remove unnecessary regulations that accomplish nothing other than creating piles of bureaucratic paperwork. This will ensure not only that Michigan’s citizens and environment are protected, but also that businesses are not unnecessarily burdened.

Regulations are important, because we must ensure that we protect the great resources and beauty of our state, but when the regulations focus too much on paperwork instead of getting results, the intent of the regulations has been lost.

Snyder will also push to change the way Michigan taxes businesses, by working with the legislature to eliminate the business-killing Michigan business tax and replace it with a friendlier flat corporate income tax of 6 percent. A flat corporate income tax is a proven revenue method that is working in other states with economies much better than Michigan’s.

In addition to making Michigan friendlier for businesses, Snyder will reform the government, ensuring that we cut wasteful spending and instead focus on issues that are important to Michiganders. He has already outlined a plan that would cut over $2 billion from the budget by making government more efficient.

Additionally, the state’s finances and performance reports would be placed online, so that everyone can easily access them.

The last major goal Snyder will accomplish is ensuring that we have a plan for our future. The education system must be reformed so that taxpayer dollars are being used to their maximum potential. The education system is an investment in the future of Michigan, and we can no longer afford to so poorly mismanage this investment.

By making Michigan friendlier for businesses, we can ensure college graduates have places to work right here in Michigan so that we can put a stop to the massive outflow of college graduates. In 2007 alone, Michigan lost 18,000 adults with college degrees. A friendlier business climate will ensure that future graduates have jobs here in Michigan.

Michigan can no longer afford to operate under “politics as usual.” It is time for a change. Michigan needs a new business plan from a proven business leader, and Rick Snyder is the candidate who can turn the state around.

The forum, “Michigan’s Economic Future: Is There a Light at the End of the Assembly Line?” will take place at 7 p.m. Tuesday in Warriner Hall’s Plachta Auditorium. Griffin Endowed Chair policy forums are designed to address timely issues including politics, economics and the environment.

“There are a lot of discussions going on these days about our current position as a state,” said panelist Rich Studley, president and CEO of the Michigan Chamber of Commerce. “I encourage those who attend to be involved in this statewide dialogue to improve communities and our state as a whole.”

Studley will join Michael A. Boulus, executive director of the President’s Council of State Universities of Michigan; Greg Main, president of the Michigan Economic Development Corporation; and Stanley Pruss, director of the Michigan Department of Energy, Labor and Economic Growth.

The panel was selected by Maxine Berman, Griffin Endowed Chair and current director of special projects for the Office of Gov. Jennifer Granholm.

“I wanted people who could bring in different perspectives,” Berman said. “I hope that what (attendees) will learn here is that the state will turn around.”

Michigan will have jobs for young people and it will have greener industry and a vibrant economy, but it will not be the economy it was, she said.

“Those four people on the panel are certainly four of the best strategists,” said Craig Ruff, panel moderator and senior policy fellow at Public Center Consultants. “These folks are working hard to create a strong job environment in our state.”

Lead the discussion

The panelists hope to discuss higher education, environmental jobs and the Michigan Business Tax.

A greater emphasis on higher education could help Michigan attract and retain knowledgeable, creative and entrepreneurship-oriented individuals, something the state has been struggling with, Boulus said.

“I hope (attendees) walk away with, by and large, Michigan’s future is in higher education,” he said.

Michigan has the opportunity to become a leader in green energy and take advantage of national stimulus money by diversifying its economy, Pruss said.

“There’s a huge potential where we can leverage our existing strengths,” he said.

One area that Michigan can use its car industry technology in is wind turbine construction, Main said. There are 8,000 parts required to make wind turbines, and those parts can be easily manufactured by companies that used to make parts for car companies.

“We are also pursuing defense as an option for Michigan manufacturing if they want to diversify out of the auto industry,” he said.

Studley hopes to explain how to make Michigan a more welcoming environment for businesses by improving the regulatory and tax climate.

“I hope that attendees will come away with a level of confidence that Michigan can restore jobs and that Michigan can retain talent,” Ruff said.

The Griffin Chair had been vacant since Gary Peters left in December 2008 to take a seat in the U.S. House of Representatives, representing Michigan’s 9th District. Berman, the first woman selected as Griffin Chair, replaced Peters in July.