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Steve Markel Withdraws, Gives Support to Sean Mullally

Thanks to all my supporters, but the reality of a too-crowded race has forced me to withdraw. There are some "not-so-democrats" runing as democrats in the primary race. It is more important that Sean Mullally, an individual who repesents the real values of our Democratic party, wins this race. If I were to continue as I have been, there is a chance an "elephant in donkey's clothing" could win the primary election. Therefore, I have given my full support to Sean.

Sean Mullally's blog entry on this event can be found at http://networkedblogs.com/5CiCO.

Jobs

There is  no doubt the largest hurdle to solving Michigan's economic problems is jobs.  The issues that need addressing are three-fold: What types of jobs? How do we create a mechanism to bring jobs here?   How do we retrain our citizens to compete in the new job market? First, the consensus of business leaders for 21st Century jobs in Muskegon and Michigan fall in the areas of Electric/Hybrid cars, Tourism, Health Care, Green Energy, Service Areas, Education, and the Entertainment business.   These areas are the wave of the future.  I support every effort to further develop jobs in these areas.

The Tax Issue:

The critical question is how to best do this?   I disagree with individuals that profess lowering taxes will draw more businesses.  For those that promote fear through deception and half truths in order to mislead others into believing higher tax rates will hinder job growth, here are the facts that prove otherwise.

Sales Tax:

Below are 22 states with equal/higher sales taxes rates yet lower unemployment rates:

Unemployment		sales tax *
rates  Sept. 09		rate Sept. 08
15.3	MICHIGAN	6.00
13.3	NEVADA	6.50
13.0	RHODE ISLAND	7.00
12.2	CALIFORNIA	7.25
11.6	S. CAROLINA	6.00
11.0	FLORIDA	6.00
10.9	KENTUCKY	6.00
10.5	TENNESSEE	7.00
10.5	ILLINOIS	6.25
9.8	NEW JERSEY	7.00
9.6	INDIANA	6.00
9.3	WASHINGTON	6.50
9.2	MISSISSIPPI	7.00
8.9	WEST VIRGINIA	6.00
8.8	PENNSYLVANIA	6.00
8.8	IDAHO	6.00
8.4	CONNECTICUT	6.00
8.2	TEXAS	6.25
7.3	MINNESOTA	6.50
7.2	MARYLAND	6.00
7.1	ARKANSAS	6.00
6.7	VERMONT	6.00
*Federation of Tax Administrators

Income Tax:

Here are the 36 states with higher income tax rates (fixed rates indicated otherwise low/high of a graduated rate) yet all have lower unemployment rates:

Unemployment		Income tax rates*
rates Sept. 09		Jan-08
		low to high
15.3	MICHIGAN	Fixed	4.35
12.2	CALIFORNIA	1.00	9.30
11.6	SOUTH CAROLINA	0.00	7.00
11.5	OREGON	5.00	9.00
11.4	DIST. OF COLUMBIA	4.00	8.50
10.9	KENTUCKY	2.00	6.00
10.8	NORTH CAROLINA	6.00	7.75
10.7	ALABAMA	2.00	5.00
10.1	GEORGIA	1.00	6.00
10.1	OHIO	0.62	6.24
9.8	NEW JERSEY	1.40	8.97
9.5	MISSOURI	1.50	6.00
9.3	MASSACHUSETTS	Fixed	5.30
9.2	MISSISSIPPI	3.00	5.00
9.1	ARIZONA	2.59	4.54
8.9	WEST VIRGINIA	3.00	6.50
8.9	NEW YORK	4.00	6.85
8.8	IDAHO	1.60	7.80
8.5	MAINE	2.00	8.50
8.4	CONNECTICUT	3.00	5.00
8.3	DELAWARE	2.20	5.95
8.3	WISCONSIN	4.60	6.75
7.7	NEW MEXICO	1.70	5.30
7.4	LOUISIANA	2.00	6.00
7.3	MINNESOTA	5.35	7.85
7.2	MARYLAND	2.00	5.50
7.2	HAWAII	1.40	8.25
7.1	ARKANSAS	1.00	7.00
7.0	COLORADO	Fixed	4.63
6.9	KANSAS	3.50	6.45
6.7	VIRGINIA	2.00	5.75
6.7	MONTANA	1.00	6.90
6.7	IOWA	0.36	8.98
6.7	VERMONT	3.60	9.50
6.2	UTAH	Fixed	5.00
4.9	NEBRASKA	2.56	6.84
4.2	NORTH DAKOTA	2.10	5.54
	*Federation of Tax Administrators

Sales Tax and Income Tax Combined:

Here are the 24 states with a higher sum of their sales and income tax rates yet lower unemployment rates:

	sales and	unemployment
	income tax rates	rate
MICHIGAN	10.35	15.30
NORTH DAKOTA	10.54	4.20
VIRGINIA	10.75	6.70
NEW YORK	10.85	8.90
CONNECTICUT	11.00	8.40
MARYLAND	11.50	7.20
OHIO	11.74	10.10
KANSAS	11.75	6.90
WISCONSIN	11.75	8.30
KENTUCKY	12.00	10.90
MISSISSIPPI	12.00	9.20
NORTH CAROLINA	12.00	10.80
HAWAII	12.25	7.20
NEBRASKA	12.34	4.90
WEST VIRGINIA	12.50	8.90
ARKANSAS	13.00	7.10
SOUTH CAROLINA	13.00	11.60
MAINE	13.50	8.50
IDAHO	13.80	8.80
IOWA	13.98	6.70
DIST OF COLUMBIA	14.25	11.40
MINNESOTA	14.35	7.30
VERMONT	15.50	6.70
NEW JERSEY	15.97	9.80
CALIFORNIA	16.55	12.20

Income  Tax

Consider this fact: at one time Michigan had an income tax rate over 6%, yet had a sound financial state with a surplus of money. Then Governor Engler squandered surpluses and resources to balance his under-funded budgets.  Additionally,  Proposal A was passed which shifted the funding burden to a dependence on our economy. As a result, the financial security of our State has been undermined.  This system is broken.  Common sense states restoring revenues with new solutions is a must to protect prosperity and create jobs.  I will apply common sense solutions to this broken system.

The uncertainty and lack of a willingness to find a long term solution to our state's budget problems is the reason for businesses not willing to come here...  I will work with all legislative colleagues to find long-term budget solution (see Budget) with a fair revenue source (see Taxes) for Michigan.

The undermining of our educational systems due to budget cuts and the taking control away from local boards causes employers to hesitate.  Worker retraining needs to continue.  Early child education like the Great Start program needs continual funding.   The Michigan Promise needs to be restored.  I will further these educational issues that will encompass all of our citizens for the good of our State.

Some legislators put their own political career and re-election over the well-being of the citizens of this state.   They do so by withholding support on legislation that would creates jobs just to make “the other side” look ineffective.  They paint job-creating legislation like the movie incentives to be robbing our state of tax dollars.  They support amputations of vital services, which forces layoffs.

The urgency “to do something,” even if it is not in the long-term interest of all of us, is compounded due to term limits.  Term limits polarize and divide.  Eliminating term limits, in conjunction with eliminating full time legislators and their Cadillac benefits, will save tax dollars and make for a more effective and efficient state government.  I will initiate change that will pare down  the waste and inequity in Lansing, yet boost job opportunities as a result of bipartisan leadership.

To date, we have experienced “the death of a thousands cuts” which has now caused the need for “amputations” of our most vital programs that have served the good of all.  We can no longer solve our problems with Band-Aids.  The cause for job loss will continue to ripple throughout our state unless there is drastic reform in Lansing over “business-as-usual”.  I will join thoughtful, visionary leaders on both sides of the political aisle to design budget (see Budget) and funding (see Funding) fixes that maintain healthy programs while leading us towards fiscal responsibility and job security in years to come.

I will not shrink from the intimidating challenges that face our State.

I am willing to confront these issues head-on.

Please support Steve Markel in creating jobs for the 21^st century by donating, volunteering, and/or voting for Steve Markel for State Representative in the August 3 primary.

Photo credits: (1) chemical worker courtesy Nino Satria, (2) roofer photo courtesy Stoker (a.k.a. engineroom), and (3) mechanic photo courtesy Tatiana Matvienko