EDITORIAL: Michigan cannot thrive on lower taxes alone
Michigan will not recover from its economic travails without strong action on the part of politicians and citizens.
So it is encouraging to see Gov. Rick Snyder’s administration back legislation as strong as the proposed set of bills which would eliminate personal property tax for industrial properties, and provide an exemption for small commercial properties.
Unfortunately, the legislation in its current form would be counterproductive, to the point of amputating a leg to cure a heavy limp.
Striking down these taxes in the hopes of creating a more business-friendly economic environment would reduce Isabella County’s revenue by $384,888 beginning in 2013. Its total revenue for 2012 is set to be $17,199,417.
Gov. Snyder might forget that people and businesses do not flourish on low tax rates alone.
Mount Pleasant’s local government can barely afford to salt and plow its roads in the winter.
While a barren wasteland would place very little burden on taxpayers to maintain, Isabella County will not look very attractive unless businesspeople want to snowshoe across the region to conduct their affairs.
This Editorial Board agrees with Snyder that bloated government and high taxes are detrimental for the business climate in Michigan, but, at least in Isabella County, it's difficult to see how much more services could be reduced.
The legislation might be appropriate for some larger counties, where it could indeed spur investment, but without a revenue-sharing scheme, smaller counties with less industry seem certain to face a net loss. Snyder's administration seems to fail to appreciate that infastructure, safety and education are also key factors in determining relocation, for both families and businesses. There's no sign of Google, or any other major corporation, setting up shop in Isabella County anytime soon.
In order for Michigan to be attractive for investment from beyond the border, it must continue to provide basic services, not just to the wealthy areas of the state.
Citizens might look at this tax cut as more money in their pocket, but how are they going to feel when trash pickup is affected or the local police and fire departments are staffed by fewer employees?
