Michigan Business Owner: Tax Reform Means 'Our Company Will Create Jobs'

Michigan Capitol Confidential ^ | 6/6/2011 | Jarrett Skorup

[MichCapCon]

State Democratic and union leaders are saying that lower business taxes will not “guarantee” job creation, but one business leader says that is exactly what he intends to do.

After a Republican Legislature passed a state budget cutting funding from the School Aid Fund in order to replace the Michigan Business Tax with a flat 6 percent corporate tax, many Democrats went on the attack.

House Minority Leader Rick Hammel told MIRS Capitol Capsule (subscription required), “[Republicans] raided the School Aid Fund… to pay for their 82 percent tax break for giant corporations with no guarantee of a single new job."

Earlier this year, Senate Minority Leader Gretchen Whitmer, D-Lansing, wrote an Op-Ed in the Detroit Free Press stating, “[The tax cut proposal] lacks any evidence it will create jobs or Michigan investment. …”

But Kalamazoo business owner David Rhoa said creating jobs is precisely what his business is going to do.

“Our company will be creating jobs directly because of this change in the tax code,” said Rhoa, the President of Lake Michigan Mailers.

Rhoa’s company is located near the Michigan-Indiana border and has locations in both states. He gave a presentation in 2007 warning that a tax hike then being prposed would result in businesses taking money out of Michigan and putting it into other states. He said then that Indiana's tax climate is much friendlier toward business.

“In 2007, I testified that Lake Michigan Mailers was looking for places to expand our business,” said Rhoa. “I said at the time that even though Michigan is, literally, our middle name, if we had to, we would find a place in Indiana or Ohio if [the Legislature] goes ahead with the tax increase.”

“So we made a multimillion dollar investment in Indiana because of what Michigan did to itself.”

[MasterGunner01]

At least Republicans try to create a business friendly environment; all the Donkeys and union thugs can do is figure out ways to destroy businesses and jobs for everyone.

Some older Freepers remember Railway Express Agency. At one time REA held a complete monopoly on moving freight around the USA. The clout of the railroads began to decline in the 1950s with the expansion of the commercial airlines and interstate trucking companies. In the freight world, REA was challenged by the upstart United Parcel Service.

REA had all the bad habits and arrogance acquired from its years as a monopoly freight agency. REA was heavily unionized and that lead to its eventual demise. The REA freight union simply could not adapt to rapid changes in the 1960s and early 1970s.

REA became embroiled in legal actions between various rail carriers, UPS, and the Brotherhood of Railway Workers. When management told the REA union people that the terms they wanted in their new contract could not be met, the union responded with: “We'll buy REA and show you suits how to run this company.” However, REA was too far gone and even the union couldn't save it. REA filed for bankruptcy and ceased operations in November 1975.

Rest in Peace REA (1839-1975): killed by its own inability to adapt and its union.

[CORedneck]

The donkeys will create a business friendly environment for those they “approve of”. If you are not in “the club” or “inner circle”, you are expected to work very hard and not succeed !

> At least Republicans try to create a business friendly environment; all the Donkeys and union thugs can do is figure out ways to destroy businesses and jobs for everyone.