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Dick DeVos is on the road and he’s giving us something to chew on… Not squeamish about taking Governor Granholm head-on, he reportedly told media folks in Petoskey that he would immediately and completely eliminate the state's Single Business Tax and substantially reduce personal property taxes in order to help create a favorable business climate in the state. Both, he said, are “very perverse” incentives to business.

Now one could call this meaningless political rhetoric but there is more to consider here. If elected- and with a legislature that presently has a like mind-set; it’s a done deal.

How will Democrats respond to an elimination of the SBT? As always it will be a response born of a post-1960’s philosophy and dictated by political expediency… They will say; “how are we going to pay for it”?? The answer to this inane question is buried in another DeVos response;

“But there's no question that there are much better ways, fairer ways, and more economically viable ways, for businesses to participate in taxation than what we do right now in Michigan,”

Translated, this means GW Bush, Ronald Reagan, and yes, Jack Kennedy; they all had it right... All knew that lowering taxes to business resulted in more tax monies to be generated. Simply put, states compete for manufacturing. They compete by reducing the cost to manufacture a product; i.e., less taxes, no taxes. The manufacturer goes to that state and makes a product. People working for the manufacturer make money, buy things, pay taxes. Things they buy create jobs for others; on and on and on.

DeVos didn’t stop there; according to the Petoskey News he said;

“We're last in the country in hotel occupancy, and so there is a tremendous opportunity in this state to expand our tourism, because we've already got the hotel rooms, we've got the capacity, the investment's already in place. All we've got to do is get people to come to Michigan to find out what we have here,” he said.”

According to the Detroit Free Press, only 55.4 percent of Michigan's hotel rooms were in use during the first 10 months of 2005, compared with 64.7 percent nationwide.

“This governor has cut spending and has cut advertising and promotion of Michigan as a tourist destination.” Asked if he would substantially increase spending on advertising for tourism, DeVos said: “Absolutely. Absolutely.”

I hope you all see the concept in these ideas. It is not raising taxes- rather; it’s creating more tax money from legitimate tax laws that are commonplace in every state.

Devos said he would present an economic plan for the state in the spring and closed the interview by responding to a question wherein he remarked; “expect to see results within two to three years”

I have only one question for Dick DeVos; it has to do with timelines… What can we expect to see at end of year 1, year 2, year3?

 Full article follows...

 

DeVos calls for radical change in leadership

Petoskey News-Review

BY FRED GRAY NEWS-REVIEW STAFF WRITER
Monday, January 9, 2006 3:06 PM EST

 

 

Dick DeVos, the Republican candidate for governor, says public opinion polls show the people of Michigan are dissatisfied with Jennifer Granholm and are willing to listen to a voice for change.

“And I'm that voice,” he says, promising bold new leadership should he be elected in November.

The wealthy Grand Rapids businessman dropped into the News-Review on his “second lap” around the state, having visited all 83 counties in the past six months.

Asked what had changed in the six months following his last visit, DeVos said the fact that his only challengers, state Sen. Nancy Cassis of Novi and Rep. Jack Hoogendyk of Kalamazoo, had dropped out and endorsed him, allowed him to “put things together” early.

“And we're getting great receptivity around the state,” he said.

“People are definitely paying attention and some of the public polling information suggests that there is tremendous dissatisfaction around Michigan and that they're willing to listen to a voice for change. And I'm that voice.”

DeVos, former president of Ada-based Amway/Alticor, said Michigan's status as the last-place performer in the country had become more firmly entrenched in many categories over the past six months, reinforcing his primary message that Michigan needs bold new leadership.

“The issues facing Michigan right now are all-around business and economic issues, and that jobs, jobs and jobs are the themes that we have got to continue to talk about and that will be my job one when I get there, to expand the jobs base in Michigan.”

DeVos would immediately and completely eliminate the state's Single Business Tax and substantially reduce personal property taxes to help create a favorable business climate in the state.

Both, he said, are “very perverse” incentives to business.

 

 

“Why would I want to invest here? Why do I want to hire somebody else? I'm only going to increase my taxes,” he said.

He said he would present an economic plan for the state in the spring.

“But there's no question that there are much better ways, fairer ways, and more economically viable ways, for businesses to participate in taxation than what we do right now in Michigan,” he said.

DeVos said that in Northern Michigan, the relationship of the economy to tourism and the tourist industry is vitally important.

“We're last in the country in hotel occupancy, and so there is a tremendous opportunity in this state to expand our tourism, because we've already got the hotel rooms, we've got the capacity, the investment's already in place. All we've got to do is get people to come to
Michigan to find out what we have here,” he said.

According to the
Detroit Free Press, only 55.4 percent of Michigan's hotel rooms were in use during the first 10 months of 2005, compared with 64.7 percent nationwide.

“This governor has cut spending and has cut advertising and promotion of
Michigan as a tourist destination. We already have this capacity. That's a chip shot in my view as far as being willing to spend and invest in our future, to get more people to come to Northern Michigan,” he said.

Reminded that Granholm had recently signed legislation allocating $15 million from the $400 million tobacco settlement money to promote Michigan in neighboring states, DeVos said:

“Well that's great. This is an election year. Every four years we're going to spend a little bit. That's not the way you build an industry. That's not the way to build a business.”

When reminded that most of the cuts in the state's tourism promotion budget came under former Republican Gov. John Engler, DeVos said:

“This governor has done nothing, in terms of looking at how we're going to drive this economy going forward, and how we're going to get back to growth.”

Asked if he would substantially increase spending on advertising for tourism, DeVos said: “Absolutely. Absolutely.”

Asked how much, DeVos said:

“We'll be coming forward with that. But I think it's an absolute opportunity for this state to invest more, and I call it invest, not spend, in potentially a very important industry for Michigan.

“We've got to be willing to invest in our future in an industry like tourism that not only provides economic activity, but from the state's standpoint, we have to do a much better job of reaching out beyond our state borders to bring others out of state to Michigan, to discover Michigan. That's new to the state, that's new dollars coming into Michigan. That's critically important.”

DeVos said the statewide economic environment is going to have a significant impact in Northern Michigan.

“Certainly Northern Michigan has felt the impact of cutbacks in the lower part of the state, certainly in southeast Michigan,” he said. “When this economy gets going, people from Michigan are willing to come to Northern Michigan. They are willing to consider a cabin or second home. They are willing to be investors in the future here. To invest and to spend here in this area.

“So getting the economy going in Michigan is critically important to everyone. Not only those who live here and those businesses who provide employment but across the state and certainly the south part.”

DeVos said he would expect to see results within two to three years from a dramatic change in leadership that would come with his election.

“But that's only going to be if we're willing to move all the way forward. But if you're going to take small steps, in terms of sending a message to the business community, taking little bitty steps, we're going to get little bitty results.”