People expect the impossible from state politicians on economic matters: “Create jobs.” The demand on politicians to create jobs leads them to throw taxpayer money at business projects, though the effort is counterproductive.
To show that they’ve listened to the call to create more jobs, politicians need examples of businesses that have opened or hired more people. But business owners and managers are not required to report every change in employment to their local politicians, let alone tell them whether the politician’s favored policies have anything to do with it.
The Tax Foundation's annual study of state and local tax burdens compares one factor relevant to state economies, and recently ranked Michigan 25th among the states. Interestingly, Michigan also gets mediocre grades on indexes that look at other measures of states' economic competitiveness and performance.
We’ve all seen a bumper sticker that make us shake our head, and it’s hard to know the intentions of the person who put it on their car, and whether they were misinformed or simply uninformed. The one I spotted the other day, however, jumped out at me as particularly ignorant.
Mackinac Center research was recently featured in the national School Transportation News magazine.
In January, the magazine wrote about a new study by Michael LaFaive and James Hohman that compares the rates of privatization of noninstructional services in schools across five states. The survey examined the use of contractors for services including busing in Pennsylvania, Michigan, Ohio, Georgia and Texas.
By Jack McHugh
Update: On Feb. 3 the House Elections Committee voted to advance the problematic provisions described in this article to the full House for consideration. They pasted nearly identical provisions into House Bill 5219, which modifies but does not repeal the current 60 day pre-election ban on tax-funded electioneering communications. The committee then reported the revised text of HB 5219 to the full House.
Some argue that Michigan needs to become a more attractive place for college graduates in order to grow the state economy. But the past decade suggests that simply targeting people with college degrees is an ineffective strategy. The reason is that people move to places where there are employment opportunities, regardless of whether they have a college degree or not.
The Tax Foundation recently published its latest ranking of state and local tax burdens. The report placed Michigan in 25th place as of 2012.
This is a substantial improvement, but to make this state a growth and opportunity leader the Michigan Legislature needs to go further by rolling back the personal income tax rate, as was promised when it was increased in 2007.
Most people think of trespassing as the crime of going on someone’s property without permission. Yet, government views trespassing differently, particularly when it involves tax assessments. Consider this phone exchange with a city official on what would happen if an assessor came to your house and you weren’t home:
By Jack McHugh
House Bill 5220, Appropriate money for Flint water contamination response: Passed 38 to 0 in the Senate
To appropriate $28 million to pay for response activities related to the contamination of the Flint water supply, of which $2.8 million is federal money. The Senate revised details of the House-passed spending plan after consulting with on-the-ground experts in the city.
Mackinac Center Director of Labor Policy F. Vincent Vernuccio testified today before the West Virginia Legislature about how right-to-work laws can benefits states. West Virginia is expected to pass a right-to-work law soon, giving workers the freedom to hold a job without joining a union.
U.S. Sen. Claire McCaskill has proposed legislation that would force sports teams who relocate to a new city to pay back public subsidies received from their former state or town. This legislation is likely influenced by the St. Louis Rams’ recent decision to move to Los Angeles (Sen. McCaskill hails from Missouri). This is a solid idea, especially given what the economic research says about stadium subsidies and given the inability of cities to protect taxpayers from being left in the lurch on these stadium deals.
Mackinac Center Director of Research Michael Van Beek was the keynote speaker at an Upper Peninsula business meeting this week, an event covered by multiple news outlets.
During his speech at Operation Action U.P. – a Marquette conference attended by members of the business and academic communities – Van Beek discussed the hidden cost of government, particularly by way of regulations.
By Ben DeGrow
Last fall, Lt. Gov. Brian Calley took the helm of a group to recommend reforms to Michigan’s special education system. For affected Michigan families looking for something better, one particular solution, unfortunately, lies out of immediate reach.
The special education task force, primarily comprised of educators and policymakers, is working to address problems Calley identified after a 2015 town hall listening tour throughout the state.
An op-ed written by the Mackinac Center’s Education Policy Director Ben DeGrow was published by the Detroit News today, bringing awareness to the need for more school choice in Michigan.
In the piece, published for National School Choice Week, DeGrow discusses how school choice brings hope to parents and students and is flourishing in other states.
The Michigan Legislature passed and Gov. Snyder signed Senate Bill 571, which prohibits schools and local governments from using taxpayer dollars to put out information about ballot proposals 60 days before an election. In the past, these entities have used public money to advocate for higher taxes.
Mackinac Center Executive Vice President Michael Reitz was featured in Monday’s edition of Stateside on Michigan Radio to discuss the need for more transparency in government in light of what is happening in Flint.
“The justification for FOIA unfortunately is very clear and very apparent in situations like the one we have now with the Flint water crisis where decisions were made that will affect people’s lives in horrific ways for years and years to come,” Reitz told host Cynthia Canty. “The people of Flint and the people of Michigan justifiably want to know who made these decisions and how were they made and why did we get it wrong.”
With West Virginia poised to become the nation's 26th right-to-work state, the Mackinac Center’s Director of Labor Policy F. Vincent Vernuccio and Michigan Capitol Confidential reporter Jason Hart co-authored an op-ed in the Charleston Gazette-Mail. The piece explains worker freedom and details how it has improved quality of life in other states:
Scarce tax dollars are needed to fill the gap between what has been promised workers in the school pension fund and what the state has saved to make good on those promises. Yet some officials shrug off the underfunding as the cost of doing business.
The cost of underfunding pensions to school budgets is massive: $6 billion to $7.8 billion would have been saved if employees had been offered defined-contribution benefits over the past decade — enough to pay for every public school teacher salary for a year.
In 2015, four states totally deregulated African-style hair braiders. The Institute for Justice, a public interest law firm, notes that this style of braiding uses no chemicals and is extremely safe. But according to a 2014 IJ report, more than 20 states still require braiders to get thousands of hours of training and purchase a state license. Fortunately, Michigan does not require braiders to take extra classes or pay fees, and as such, is one of 10 states to which IJ gives an A rating.
By Jack McHugh
Senate Bill 434, Authorize highway drug testing pilot program: Passed 28 to 10 in the Senate
To authorize a one year pilot program in five counties for roadside drug testing, to determine whether drivers are operating vehicles while under the influence of a controlled substance (marijuana in particular) by means of “oral fluid analysis” (saliva test). After the first year the State Police could continue the pilot programs in other counties.
By Kahryn Riley
New research from the Virginia-based Mercatus Center indicates that schemes to ration health care services through certificate-of-need requirements — such as those imposed in Michigan — increase the difficulty of getting access to health care services while doing nothing to reduce their costs.
By Jack McHugh
Senate Bill 90, Create African-American Affairs Commission: Passed 34 to 2 in the Senate
To create an Office of African-American Affairs in the state Department of Civil Rights, and a government African-American Affairs Commission consisting of 15 political appointees who have "a particular interest or expertise in African-American concerns," with the mission of developing “a unified policy and plan of action to serve the needs of African-Americans in this state.”
You might get the impression that no one in Michigan values higher education, given the way university funding gets portrayed. A new report from a group called the Young Invincibles gives the state an F for the size of its subsidies to public universities. But the numbers tell a different story.
By Ben DeGrow
Some Michigan officials are preparing to tell us how many more dollars ought to be poured into the state’s K-12 school system. They expect to have an official report in hand soon to make their case, but other recently released numbers raise some tough questions.
A limousine company based out of Dearborn Heights is suing Uber for failing to abide by Michigan’s 25-year-old Limousine Transportation Act. At first glance, the lawsuit seems like an attempt to take down a competitor: The same limousine company filing the lawsuit recently had its operating license revoked by the state for failure to comply with the same regulations it’s now accusing Uber of not complying with. It’s like when kids get caught whispering in class and their first reaction is: “But he was doing it too!”
