Monday, December 29, 2008

Radical tax and infrastructure restructuring

These ideas should have been implemented years ago. Michigan has been in a state of economic catastrophy for a number of years with the migration of manufacturing jobs overseas. Our leadership is failed leadership going back many years (before Governor Grandholm).

1) Eliminate business tax and replace it with realistic service fees. We are in a state of emergency and need to give business all the natural advantage it can have. This would be a net reduction in the cost of doing business in the state, not a shell game like Engler's property tax to sales tax swap.
2) A goal of allowing Michigan residents the opportunity of sometime in their life to actually own their house. Today as it stands even when our houses are paid for, we basically make a house payment to the state until we die.
3) User taxes to replace as much revenue sharing as possible. Number one, tolls for our roads.
4) Revamp of the educational system. Folks, public education is not localized anymore. It is under state and local control by their mandates. District consolidation and realistic benefits need to be implemented as a start. The negotiated benefits of the auto industry cannot be the standard for union workers (MEA, NEA) any more. THE STATE CANNOT AFFORD THESE BENEFITS JUST AS MUCH AS THE AUTO INDUSTRY CANNOT. OH, PLEASE DON'T FORGET THE MANAGEMENT BENEFITS OF THESE INSTITUTIONS-RIDUCULOUS. WE NEED CUTS ACROSS THE BOARD, FROM TOP TO THE BOTTOM. As the Japanese use to do (maybe continue to do) first cut management, second cut management, third cut managment. After management has been cut three times, there will be a period of time where the workers will see management is serious about the survival of the company and be more apt to help.

These are drastic suggestions for drastic times. Incrementalism will be necessary in some cases, but not all. And the alternate is not to do nothing. In the current recession it is not unreasonable to expect a minimum 25% reduction in revenue. I think our goal should be to maximize the number of folks with employment using percentage decrease of pay, lengthening of tenure time (minimum time for maximum pay-make it reasonable as it reflects in other industries) hour reductions, time off without pay, elimination of overtime, true increase of efficiency, versus the entire loss of jobs. These job losses equate to many families with children with loss income. Our leaders have a very serious responsibility. Unfortunately many of them have failed and are largely responsible for the economic predicament we find ourselves in.

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