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
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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.
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“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.”