Oakland County Executive L. Brooks Patterson visited the Clarkston Rotary May 1 at Deer Lake Athletic Club.
Addressing the Rotary, Patterson explained one of his economic initiatives for Oakland County, bashed Michigan’s Single Business Tax and encouraged listeners to join his campaign to repeal the SBT.
‘I think he’s right on. He speaks for me and is so intent on trying to help Oakland County. We need to be proud we have such a leader,? said Clarkston Rotary President Tim Everhard. ‘He’s planning for the future and was talking about some things coming in 2008 or 2010. How many politicians plan that far ahead??
Father Don Duford of Church of the Resurrection concurred.
‘It was well done and well addressed. Having spent 25 years in the business world, I’m in agreement the SBT has to be looked at. When business does well, everything else does well,? said Duford.
Patterson explained how his Emerging Sectors Initiative came about over the last few years and what necessitated the need to look for new economic opportunity.
The Emerging Sectors programs identifies industry and technology sectors that have high growth rates and looks to find businesses in those sectors that might come to Oakland County and expand.
‘We have to diversify our economy. Had we diversified a long time ago, we wouldn’t be a state which is now 50th in economic momentum, 50th in job creation and the only state to have net job lost in ?04 and ?05, except for those ravaged by the hurricanes, and number one in unemployment. We had all our eggs in the automotive basket,? said Patterson.
Patterson discussed his several trips overseas to drum up economic interest in Oakland County among foreign companies. He also explained how research for emerging sectors revealed the United States no longer dominates in technology. Out of 144 top companies worldwide his staff wanted to attract to Oakland County, 60 percent had no presence in the United States at all.
‘I remember growing up as a kid ‘Made in the U.S.A.? meant something. It meant we had the technology. We were the innovators. We were the people who were on the cutting edge. There was no question we were leading the world in technology. I don’t know we can honestly make that claim with the same braggadocio we might have before,? said Patterson.
‘The point is, once we get them here and they take root here in Oakland County and begin to see the quality of life and the opportunities, they are going to prosper,? said Patterson.
According to Patterson, alternative energy and financial services are the top two emerging sectors in Oakland County.
The discussion of improving Michigan’s economy eventually shifted to the SBT tax.
‘As I go overseas trying to recruit businesses, like in the financial services, one of the first questions that popped up as we’re trying to attract these business, believe it or not, is the Single Business Tax. And we always take an accounting firm with us and it’s interesting to try and hear these guys try to explain the SBT to someone in China, Japan or the UK. You just can’t. It’s such a difficult tax to explain,? said Patterson.
‘The Single Business Tax is unique, ladies and gentlemen, in the United States. No other state has a Single Business Tax. Nobody. It’s a tax on payroll. If any man or woman who’s in business in this room tonight goes to work tomorrow and decides to go hire an employee, you’ll be taxed on the decision, you’ll be taxed on payroll. If you want to give them health care, you’ll be taxed on that. If you want to contribute to their 401K, you’ll be taxed on that. It’s a disincentive to create jobs,? said Patterson.
Patterson stressed he knows the SBT is not the only thing to blame, but highlights it as something he as an executive can change. He said the SBT is set to expire Dec. 31, 2009 and his petition drive simply speeds up the process to Dec. 31, 2007.
‘This is a one state recession in America, and many people, many of your friends, are losing money in your business and yet you’re paying the Single Business Tax. It is almost criminal in the way it operates,? said Patterson.