State Budget & Tax Reform Is Possible
The "letter to the editor" below was submitted to newspapers associated with MLive.com throughout Michigan to clarify work Detroit Renaissance is engaged in to advance state tax reform.
Dear Editors:
I want to clarify a few points reported in Peter Luke's June 28 column in MLive.com regarding efforts to reform Michigan taxes.
- Data is used showing Michigan has an "average" tax burden. This data ignores the fact that the total costs of doing business in Michigan, including wages, benefits, utilities, regulatory compliance, etc., is above average and that most states we compete with for jobs have below average costs.
- The Anderson Economic Group is identified as working for Detroit Renaissance and Speaker Andy Dillon and Detroit Renaissance as working with just Speaker Dillon on a plan. Anderson Economic Group is under contract with Detroit Renaissance to study tax reform options and Detroit Renaissance has been working with the majority and minority leaders of both the House and the Senate on devising a plan.
- The graduated income tax is reported as polling well. We are the only private sector group that we know of that has polled this idea and can report it does not poll well and is viewed even more negatively the more people understand how it works.
Detroit Renaissance believes the State's first priority should be to enact significant structural budget reforms to get its fiscal house in order before considering tax changes. But since the cost of doing business in Michigan requires incentives for virtually every new job being attracted to the state, we believe a tax reform plan that reduces business costs in a fiscally responsible way is necessary and can be accomplished. However, we believe those advocating for a graduated income tax really just want to increase state revenues instead of reforming the way the state spends its money. This would be the worst possible outcome for the future of Michigan.
Sincerely,
Doug Rothwell, President
Detroit Renaissance









