Happy New Year
December 29, 2008 Economy 2 CommentsAs we look forward to the New Year and a new legislative session, I find myself chanting the same word: “Reform, Reform, Reform.”
In 2007, we stared down the barrel of a gun looking at a nearly $1 billion budget deficit, and the resounding call from the Democrats was “TAXES!, TAXES!, TAXES!”
Taxes in the form of an increase in the state income tax, taxes in the form of a two percent service tax, taxes in the form of a revenue neutral Michigan Business Tax.
It is now two years later and conservative estimates place our impending budget deficit in the hundreds of millions, realistically, we are probably approaching another $1 billion hole. History has proven that taxes are not the answer.
The Democrats’ solution to the state’s 2007 deficit was a band aid fix to a problem that has once again reared its ugly head and I have news for the House Leadership and the Governor, no more blood can be squeezed from the turnip. The taxpayers of Michigan have been bled dry.
Michigan has seen a steady decline in jobs and homeownership and a steady increase in the number of individuals and families applying for social assistance, or leaving our state altogether.
For the month of November, Michigan reported nearly 10 percent unemployment and we have been consistently listed in the top 10 of all states for home foreclosures
Every time I meet with a business owner, or a CEO, or a constituent, and every time I review new statistics on the state of our economy, I come back to the same conclusion: we need fundamental change in Michigan in order to put our state on the road to prosperity once again.
I am a firm believer in smaller, more efficient government. I have supported measures to cut taxes, rein in spending and even sponsored legislation to create a part-time legislature. I have done all of this because I truly believe that when you lower taxes, you attract businesses and you create jobs.
As we begin the 95th Legislative Session, Senate Republicans will continue to challenge House Leadership and this Administration to see the light.
The key to the renewed success of Michigan’s economy is reform.
Part of that reform includes sweeping changes to the state tax policy by lowering rates across the board for all businesses. But it’s more than just tax relief – we must also control our spending.
Chances are, the Democratic leadership will continue to baulk at our efforts, but if we do not tighten the purse strings now, there will be a resounding call for tax increases in the next two years just to accommodate the state’s out-of-control spending.
So I think it’s time for the people to step forward to start a new movement to transform Michigan.
We need to ask questions like:
· Why is Michigan one of only four states that spends more on corrections than it does on higher education?
· Why does it cost 50 percent more to house a prisoner in Michigan than it does in Indiana?
· Why are our teachers the third highest paid in the country, yet our school districts are plagued by poor performance?
· Why are nearly half of the students graduating from Michigan’s universities taking their degrees to other states?
In the coming weeks and months, Senate Republicans will be reintroducing legislation to reform our schools and prisons, repeal the MBT surcharge, and reform state government.
Pumping more taxpayer dollars into a broken system does not fix the problem.
Instead of doing just enough to put off crisis for one more fiscal year, our focus must be on identifying the root causes of the problems and coming up with long-term, lasting solutions.
I am committed to spending my final two years in the Legislature working to leave state government and Michigan in a better condition than I found them and I know, together, we can bring commonsense solutions to the our great state.
