By Richard Zowie
Leader Staff Writer
Michigan Senate Majority Leader Mike Bishop spoke at the August 7 Oxford Chamber of Commerce luncheon, briefing area businesses leaders of the issues concerning Michigan along with what the state government is doing to work on solutions.
He also answered questions after his speech.
The senator spoke on the Michigan Business Tax, health care reform, water issues, energy reform and state budget, but focused most of his speech on economic issues.
Speaking at Oxford’s Independence Village, Bishop talked about the tough times Michigan has been facing with its sluggish economy, budget deficits and government fights on whether taxes should be raised or spending cuts should be implemented to solve the problem.
‘Last year was a difficult year for the Michigan state government, for you and your families,? the senator said. ‘It was one of the most tumultuous years in the history of our state government. Having said that, I believe a lot was learned in the process.?
Part of the reforms Bishop mentioned included eliminating the surcharge from the MBT, which was created to replace the controversial single business tax. Among the other attempts by Bishop and the Senate Republicans to fix the MBT are bills that would remove taxes (including sales taxes) from the MBT base, would allow many more businesses in Michigan to qualify for a small business credit and would exempt materials, supplies and payments to subcontractors from the tax.
These bills have passed in the Senate and are awaiting action by the Michigan House.
The tough economic times have underlined the need for health care reform, the senator said, as businesses are forced to scale back on health insurance they offer and as an estimated 1.1 million Michigan residents currently are without health insurance.
Bishop also talked about the water withdrawal issue and how the Great Lakes Compact limits the amount of water that can be taken out of the Great Lakes. ‘Water is Michigan’s greatest natural asset,? he said. ‘We need to seal up our rights to the Great Lakes water and balance it with the needs of business.?
Bishop then briefly spoke about energy reform, saying that the older plants in Michigan need to be repaired or replaced.
He then moved onto perhaps the biggest issue in his speech: the state budget. Michigan’s budget is estimated at about $44 billion. Back in 2007, Bishop said, the proposed budget was about $2 billion more than what was brought in through revenues.
Governor Jennifer Granholm’s plan, he said, was to try to bridge the gap by increasing taxes.
‘We didn’t want to increase taxes,? Bishop said. ‘My proposal was for a $1.2 billion government tax cut, which would’ve been felt by everybody.?
The senator conceded that the cuts would’ve been steep, but reiterated that the state needs to live within its revenues.
The solution, on paper, can seem as simple as increasing revenues or cutting expenditures. Bishop believes that Michigan’s solution can be found in making the state a haven for new businesses, as well as keeping current businesses here. As an example, he pointed out the situation with Indiana Governor Mitchell E. Daniels, Jr.
According to Indiana’s state government website, Daniels created the Indiana Economic Development Corporation. In 2005, in only 10 months, Indiana was the only state in America to obtain investments from ‘high profile? automotive investments from companies like Toyota, Honda and Cummins.
The site adds that Governor Daniels ran the IEDC in a way for it to act at the speed of business, not the speed of government, to attract new jobs.
‘Indiana is a red-hot, business-friendly state,? Bishop added. ‘It’s moving in the right direction of a common-sense business model.?
Bishop’s job proposals, he said, are designed to get people to move businesses to Michigan and to keep Michigan businesses in Michigan. ‘We need legislation to create a business-friendly environment,? he said. ‘Government becomes a problem when it over-regulates.?
Bishop feels that the economic issues of the MBT and the state budget are the ones that impact the Oxford area the most. The state must get its spending under control and downsize government, he said.
Bishop also dismissed any suggestions that he might run for governor once his term in the Senate expires.
‘It’s not even a consideration right now,? he said. ‘I have so much on my plate right now, that it’s hard to plan for the future. I’m prepared to go back to the private sector. To me, the elected life is not necessarily my sole objective in life.?