Michigan should enable entrepreneurs to pursue their ambitions without having to leav

From Shauna Nicholson's Blog at; http://bit.ly/1XFCq

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So, now that Detroit has learned from the mistake of putting all of its eggs in one auto industry basket, we’re rising from the ashes to put our eggs in only a few new industries. Hm. Really? Sure, we’ve shown some early successes with film and others–just like the auto industry did. But are we really about to take those same steps with no insurance [[through diversification) for our future?

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What IF we let entreprenuers pursue their dreams and make the business cases for what they know best? What IF our focus was encouraging their development, whatever it may be, and supported the viable business cases that ensued?

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Is she arguing for more government subsidies for businesses outside the auto industry? More tax breaks? Government involvement in funding start-ups? This is the same kind of stuff that comes out of the Mackinac Conference. It all sounds good on paper but doesn't really seem to say much or have any specific solutions.

It is true that VCs like to fund stuff that is physically near them, and that there are relatively few venture firms in Michigan. Everyone likes low taxes, if not scant services.

But from what I can see, one of the main barriers to the creation of new businesses is the maze of potential regulatory authorities that needs to be navigated before a new business should be started. Regulation is important, but the process should be streamlined. The processes involved should be cheap, fast, and predictable. I think this is an area where Detroit and Michigan make vast improvements.

Michigan in general and Detroit specifically is NOT a financially good climate to start a business. The taxes and union requirements are cost-prohibitive when compared to other places. Until this changes, that premise won't change, either.

Which taxes? I don't think any of Michigan's taxes are uncompetitive when compared to other places in the county and in some cases are on the low end.

Here's a list of corporate tax rates for states and countries:

http://www.taxfoundation.org/publica...how/22917.html

Although Michigan ranks low among the states, the US ranks high among the countries.

Here's a list of state sales tax rates:

http://en.wikipedia.org/wiki/Sales_t..._United_States

Michigan is average.

Here's a map showing Right-To-Work states:

http://en.wikipedia.org/wiki/File:Right_to_work.svg

You can't compare corporate tax rates directly--if you look at a chart like that, you might think that Ireland has much lower corporate taxes than the US, but actually it doesn't--the tax in Ireland is over a very wide base, while in the US there are many, many deductions and credits. Ireland actually collects a substantially higher portion of its GDP in corporate taxes than the US does.

I do think the US should reform the corporate tax, and Ireland could be a good model, but the burden of the US corporate tax is overstated just looking at the nominal rate.

The people at the Tax Foundation probably know that, but they be pushing an agenda;).

Thanks, mwilbert, I wasn't trying to make a point. Just providing information that I discovered in the process of educating myself, and thought I'd share. If you could provide a link to substantiate your claim, that'd be great. [[Not that I don't believe you. :))

Michigan ranked 19th on the 2008 Small Business Survival Index, tumbling from the number six spot held in the previous year's report.

http://www.sbecouncil.org/uploads/sb...08%5B1%5D1.pdf

Here's the documentation on the corporate-tax-as-a-%-of-GDP info:

http://www.oecd.org/dataoecd/48/27/41498733.pdf [[see page 2)

I want to make clear that I realize there is more than one way to look at the corporate tax burden, and this one may not be the fairest/most appropriate either. However, because so many tricks can be played with corporate income, it isn't easy to figure out what a fair comparison is. There are a number of ways in which the US system is messed up--for instance we are the only significant country that taxes our corporations' overseas earnings. Most countries tax operations in their own territory, but ignore income from other countries, which is why a lot of companies with major foreign income domicile in other countries.

Just like the personal income tax, the corporate income tax could use some serious reform.

detroit small business assistance needs to be streamlined... hopefully mr. bing will have some specific vision on that..


hmm... just stumbled across this.. saw it on Good Morning America.. the micro-loans program--

http://www.kiva.org/