Hidden costs dog business in the D: Higher taxes, extra red tape among issues

**digitalvision** · May-11-09, 10:17 AM

The city needs to stop looking at this as a "mothers teat" kinda thing. Business doesn't work that way.

As Hemingway adeptly stated, the city could cut the taxes on business greatly and not have to cut that much in revenue. Why should they do this? Why should the city decide their number one priority is business development of all kinds, especially micro-entrepreneurship?

Because the city, above all else, needs jobs. Yes, some of those jobs might go to some suburbanites; but the city needs to be THE job center of the region as it once was. Jobs help heal crime, which lowers policing costs; Jobs create tax revenue of all kinds; Jobs also bring pride into communities that have lost hope. It's not a silver bullet, but jobs are the closest thing to one Detroit could have.

People make decisions based on their pocketbooks, plain and simple. The city is facing horrid poverty and a lack of opportunity - BUSINESS is what gives that opportunity.

And why micro-entrepreneurship? That's the rung that many african-americans are going to start on [[and some white and latino folks too) due to the lack of financing available, exacerbated by the current economy climate. Maybe it's a community loan program; maybe it's grants; maybe it's bringing training programs to folks to be entrepreneurs.

Guess what - some of the best businessmen are former drug dealers. Being a drug dealer gives you all the prerequisite skills, with a little refinement. Bing is serious he says about creating opportunities. Let's see'em do it. There's some things that Bing could do immediately [[like change the parking policies) that could show Detroit is now open for business.

**Crumbled_pavement** · May-11-09, 02:19 PM

Originally Posted by digitalvision

As Hemingway adeptly stated, the city could cut the taxes on business greatly and not have to cut that much in revenue.

To expand on what you're saying, the city could actually cut taxes and increase revenue. Better to have a low tax on a high amount of people than a high tax on a low amount of people. Lower the taxes and more businesses will come thus increasing the tax base over time. It's the same concept in pricing a product in a retail store. The price is too high and no one wants to buy it, lower the price. I don't understand why the city can't comprehend such a basic concept.

**Hypestyles** · May-11-09, 02:31 PM

I want my car insurance rate lowered-- even if you have a perfect driving record [[like me) it still sucks!! the next governor candidates had better have something to say about insurance reforms..

**Gannon** · May-12-09, 02:32 AM

I've got a new one for you...talking with the nice Calder's Dairy person over their factory store counter down in Lincoln Park yesterday morning...I asked about wholesale to the deli [[planning for those Boston Coolers).

"Good thing we got our license to deliver there"...

..."but we still cannot do any home delivery, because that's another license."

I haven't found out how much each cost, and what requirements the city pads upon their 'benefit' of servicing the residents.

But as soon as I know, you'll know.

**Moetown** · May-12-09, 04:36 AM

Calder's Dairy

**detcbd** · May-13-09, 07:49 AM

Hello - I don't post much here, but wanted to clarify that Personal Property taxation is state-wide; it is part of the General Property Tax Act.

croweblack · May-13-09, 08:23 AM

Originally Posted by Crumbled_pavement

To expand on what you're saying, the city could actually cut taxes and increase revenue. Better to have a low tax on a high amount of people than a high tax on a low amount of people. Lower the taxes and more businesses will come thus increasing the tax base over time. It's the same concept in pricing a product in a retail store. The price is too high and no one wants to buy it, lower the price. I don't understand why the city can't comprehend such a basic concept.

I don't understand why the posters on the non-detroit section don't understand it either

**Novine** · May-13-09, 09:38 AM

"The price is too high and no one wants to buy it, lower the price. I don't understand why the city can't comprehend such a basic concept."

People understand the concept just fine. What you apparently don't understand is that it's impossible for Detroit to compete with suburban locations when it comes to property tax rates. Detroit's hammered by the combination of having higher demand for services and property tax values that are a fraction of property tax values in the suburbs. Detroit's property tax base is $9.4 billion. Novi's is $3.5 billion. Detroit serves 900,000 people. Novi serves 50,000 people. You can't provide services to 900,000 people on the tax revenue for 50,000 residents or even double that.

"Lower the taxes and more businesses will come thus increasing the tax base over time."

Businesses won't come to a city where you're not funding the basic services like police and fire.