To: Governor Granholm and Michigan Legislators
From: Michigan’s Business Community, Michigan Chamber of Commerce, Detroit Regional Chamber, Grand Rapids Area Chamber of Commerce, Lansing Regional Chamber, Associated Builders and Contractors of Michigan, Kalamazoo Regional Chamber, Michigan Association of Home Builders, Michigan Manufacturers Association, Michigan Association of Realtors, Michigan Restaurant Association, National Federation of Independent Businesses, Business Leaders for Michigan, Small Business Association of Michigan, Michigan Grocers Association, Michigan Retailers Association, Michigan Bankers Association
Date: September 25, 2009
RE: Hold the Line!
We are writing you today, with five days left in the fiscal year, asking you to hold the line and pass the budget deal that was agreed to by leaders in the Legislature. With a 15% unemployment rate, Michigan’s business is already unstable and uncertain. We stand unified in our opposition to any tax increase on job providers.
In 2007, each business was faced with a 22% tax increase in the form of the MBT surcharge, while the Legislature and Governor promised structural reforms to insure this would not happen again. The business community has engaged in the process of making structural reform a priority, encouraging conversation among legislators and offering menus of possible reforms and has expected as much for two years. It is a drastic mistake to raise taxes and make Michigan less competitive when even the simplest reforms have not been considered.
Further, we are concerned about the conversation that has begun of passing a continuation budget that does not include the targeted cuts. A continuation budget that does not reflect the agreement between legislative leaders will only make it harder to make the difficult votes that are required during this challenging time. Moreover, a continuation budget will unnecessarily concentrate the impact of the reduced spending into a concentrated fiscal year. Michigan cannot afford to once again kick the can down the road.
Make no mistake, Michigan’s business and trade organizations are ready and willing to be part of the solution to set Michigan on the path to reform and revitalization. Based on the rumors coming out of the Capitol, we are not sure how many members of our government are ready to do the same thing.