[econjack]

Politicians just don't get it. First, most of the tax changes are defined in their bills as temporary cuts or extensions. That does absolutely nothing in the business planning model to promote growth. When a new employee costs about $25,000 to bring up to "productive speed", they need tax cuts that will persist indefinitely to entice them to hire someone new. Second, tax credits do nothing unless you have a profit in the first place. It may be years before that happens, especially to a new, startup company.

Herman Cain's 999 plan would go a long way to fixing Detroit's (and every other city's) problems associated with low employment. The key, however, is to make the tax cuts permanent so they affect the planning model.

[UnChained]

There is so much to Michigan’s governance that seems designed to destroy business. Among thee worst is the astounding 30% inventory tax.

Every business feels the pressure to have nothing (Spare parts, Sales inventory, service repair inventory) on hand because of this exorbitant tax. If something sits on the shelf for three years, you’ve paid for it twice.

On top of that, there is the cost of counting every miniscule item a couple of times each year to satisfy the reporting requirement.

It wasn’t just Granholm that is at fault but the legislature and the whole damn state. When the rest of the country was going like gangbusters and Michigan was having a one state recession, you would hear people muttering about it and blaming Bush.