With Michigan’s job recovery still lagging behind the national average, Democratic Governor Jennifer Granholm will be facing a tough re-election campaign from her opponents.  Dick Devos has only suggested modest changes.

Bad economic times, like these, call for a more comprehensive plan.   Libertarians, with their support for free market reforms such as eliminating the Single Business Tax and reducing burdensome regulations, suggest even more ways to increase opportunities and improve the Michigan's economy...

Economic Statement

            We unapologetically support a free economy.  We distain any type of politically controlled economy. Politicians haven’t created jobs.  They have only shifted jobs from the private sector to government employment. They also reward mismanagement and irresponsibility with taxpayer funded bailouts, and other types of corporate welfare.

            The best way to create jobs, keep the cost of goods down, and provide a better standard of living for everyone, is to eliminate the single business tax.  Likewise we must remove taxes on private property, fuel, and the internet. Privatize licensing. Many of these laws are designed to entrap people.  People should not have to spend more on permits than materials to improve their homes.  It’s time we stopped the abuse of fines and forfeitures.

            Unlike other politicians, I won’t claim that I can do a better job of running the economy; the best thing politicians can do, is get out of the way.

            We support a free market economy.  We do this without shame, doubt, or hesitation. We condemn, distrust and abhor any type of politically controlled economy. Politicians have not created jobs.  Democrats and Republicans have only shifted jobs from the private sector to government employment. They also reward mismanagement and irresponsibility with taxpayer funded bailouts, and other types of corporate welfare.

            The best way to create jobs, keep the cost of goods down, and provide a better standard of living for everyone, is to eliminate the single business tax.  Likewise we must remove the private property and fuel taxes, while privatizing forms of accreditation like licenses and permits. Politicians pass laws in hopes that we will mistakenly violate regulations so they can cancel licenses and even imprison us.

            We also oppose burdensome regulations. They keep businesses from being competitive.  We will always strongly resist any, and all, attempts to regulate and tax Internet transactions. The idea of cutting spending and down sizing the government statewide is a worthwhile fight.  That’s why we propose an end to over-spending. We Libertarians oppose the abusive application of penalties like fines and forfeitures.  Unlike other politicians, I won’t claim that I can do a better job of running the economy.   The best thing to do is get out of its way.

            Libertarians emphasize tax relief and lean state budgets.  Both republicans and democrats, on the other hand, like pork so much.

The best thing politicians can do for jobs is… get out of the way.

The best thing politicians can do for business is… get out of the way.

The best thing politicians can do for healthcare is… get out of the way.

            These are my solutions to Michigan’s problems:

 Eliminate The Single Business Tax. 

            With the Single Business Tax, Michigan imposes the second highest corporate taxation burden in the 50 states.  This creates a tremendous disincentive for national and international businesses to come to, and invest in, Michigan.

            What’s more, Republicans and Democrats have had sufficient information of the SBT’s destructive nature for the past 20 years.  In the mid-1980’s, the Mackinac Center for Public Policy conducted a study which resulted in a factual finding that Michigan’s Single Business Tax imposed the second highest corporate taxation burden among all states – and the highest among the 11 Midwestern states – per $1,000 of personal income.  It also found that Michigan's corporate tax burden of $12.17 per $1,000 of personal income was nearly double both the national average of $6.45, and significantly higher than its closest Midwestern competitor, Wisconsin, at $6.96. 

            Yet, despite the SBT’s appalling discouragement of business investment, our politicians have failed to act on behalf of the people of the State of Michigan.  As such, we the people have been directly harmed, fraught by a failing economy, which can not compete on a national level due to artificial burdens on employers, enacted, and continued by Democrats and Republicans.

Increase Individual Economic Liberty.

            The big issue is the lack of individual liberty.  Politicians have directed public attention to the economic consequences of their misguided policies:  Unemployment, poverty, and crime.

            In their zeal to manage essentially every aspect of people’s lives, the Democratic and Republican politicians have taxed individuals and small businesses into poverty, while offering special breaks to large corporations and special interests.  As a result, people have less buying power due to taxes, and less ability to create work for other Michiganders.

            Under the free market, restrictions on business should only exist to protect people from the imposition of force and fraud, and direct physical harm.  Other restrictions are an impediment to economic growth that would be better managed by a private organization.  Likewise, many services that are currently controlled by politicians at taxpayers’ expense should be transferred to the private sector.  Under private management these services shall achieve a much greater efficiency, lowering the cost to consumers, while at the same time not burdening the public with their cost.

Stop The Current Waste Of Money On Non-Violent Crime.

            While people face real concerns about paying rent, buying groceries, making house payments, or getting to work, politicians feel free to spend your money on keeping people locked up in prison, who are no threat to you.  Prisons are expensive.  Prisons exist to protect citizens from brutal criminals who would not hesitate to prey on others.  Yet costly prison space is filled with people whose only crime was having unhealthy alternative life-styles, seeking non-traditional medicine for terminal illness, or trying to relieve the suffering of others.  Not only is this a waste of your money, it’s immoral. 

            People imprisoned for medical marijuana, physician assisted suicide, non-payment of taxes, and substance related charges should be pardoned.  People, imprisoned for committing non-violent property offenses should, instead, face penalties that result in restitution to the victims and the taxpayers for their offense.

            Governor Granholm could end this tragedy, with the stroke of a pen.  She will not.  Neither will Dick Devos.  I am passionately committed to preserving renewing individual liberty and working for true social justice. 

            I could spend the next several weeks enumerating examples or simply suggest the following standard by which to make such a judgment: Money is wasted when it is directed at trying to run peoples lives, rather than using it to protect people’s right to run their own lives. 

            I propose we eliminate the laws that overextend out justice system.  As well, more money needs to be directed at arresting and prosecuting violent offenders and enforcing laws against theft and fraud.  Finally, we should enact laws that allow first-time property offenders to pay with confiscation and long-term restitution rather than prison.  This restitution could lead to funds for further enforcement.

Use Free Market Solutions To Develop Michigan’s Urban Centers.

            The free market is the economic base of any stable or growing community.  It is no coincidence that communities with the most poverty and highest crime rates are also the ones with the highest tax rates, and almost always those that have an income tax. 

            Economic growth is the cumulative consequence of individual initiative.  Unfortunately such initiative is often stifled by burdensome restrictions such as permit fees for every imaginable enterprise and license requirements that do little to improve the employee’s qualifications, but rather fill the coffers of politicians.  Examples of this include costly permit requirements to do home improvements, a permit needed to be a street vendor, and beautician licenses to give haircuts.

            A lack of reasonable transportation prevents many people from being able to commute to work.  This problem is often compounded by the fact that communities require cab drivers to buy plates to pick up or drop off passengers.  These plates are available in limited numbers.  Another restriction is that private bus services cannot compete with public transportation monopolies to pick people up at bus stops.

            Meanwhile, a basic responsibility of local government goes neglected: protecting the innocent from predatory criminals who cause citizens to live in fear of home invasions and bodily harm.  When this happens, those who can afford to move, do so, selling their house at a bellow market rate.  Business owners find security costs to be prohibitive.  Many close down.  The outcome is what is commonly called urban blight.

            Libertarians believe local government should concern itself with basic public safety and a legal system.  The rest can be managed by private and charitable concerns (in a prosperous community).  Minimal taxes lead to maximum prosperity.  The most prosperous communities have no local sales or income tax.  When alternative sources of revenue (such as contract and court service fees) are available taxes should be repealed.

            As Governor, I would advocate giving communities back to the people who live in them.  The state government is too large and detached to manage local concerns.  This means letting communities keep their money.   Not having it sent up to Lansing, so they can wait for it to trickle back down.

            Libertarians believe in letting people put their own dollars to work.  We believe in letting people set their own hours, and choose their own life styles.  Our reasoning is simple.  You have a right to control what belongs to you.  Your life is your own.  This may sound like common sense.  But when you look at what politicians have done, you will find it is far from common.

Stop Funding Of Most Government Programs Because They Are Wasteful.

            Most state government programs should be reduced, phased-out, privatized or eliminated.

The same goes for the taxes: Smaller government requires far less revenue.  Many taxes could be replaced with contract fees or billing people for specific services or the use of state resources.  Some state-holdings could be put up for sale or rent. 

            The proper role of state government is to protect the basic rights of its citizens.  In other words, to prevent people from getting away with acts of violence against others, and to prevent people from destroying or abusing one another’s property.  A properly limited state government does not require much, if any, taxes; only enough to ensure a police force that will protect the rights of Michigan’s citizens. 

            Such a limited role is proper because government-run industries are ineffective.  Government programs are typically one-size fit all and there is little, if any, financial incentive to improve these programs.  Take, for instance, Michigan public schools.  As of 2004, Michigan ranked ninth in total per-pupil public school district spending among the states and second in teacher salary.

            Yet, despite the high spending, Michigan receives a poor return on investment.  In a Mackinac Center study dated October 6, 2006, it reported:

Michigan’s rankings for public school performance reveal mediocrity. In 2005, the American Legislative Exchange Council ranked states by various student test scores for 2003. Michigan college-bound high school students ranked only 25th on ACT scores. Our eighth-graders scored 34th in math on national exams and 27th in reading. According to U.S. Census Bureau data for 2005, Michigan ranked 34th in the nation for persons over age 25 with a bachelor’s degree and 21st in the percentage of high school graduates over age 25.

The Michigan public schools are not performing well.  And the problem is certainly not a lack of funding, as the Democrats and Republicans claim, but a lack of freedom.  Michigan schools are tied down by heavy state regulations and little incentive to improve since schools will keep receiving state money.

            Further, there is actually a disincentive for schools to improve.  When schools under perform, the politicians predictably “come to the rescue.”  Politicians pump in greater amounts of revenue to the schools in false hope that money will improve performance.  However, this only leads to schools continuing their poor performance and even more money being streamed into the schools, which again, fail to yield the desired results.

            Libertarians understand that Michigan must look to free market solutions to improve our schools – eliminate state-run schools and allow administrators and teachers greater freedom to adapt programs to individual students by removing burdensome school regulations.

            This is just one industry – and an extremely important industry – that needs to be taken out of the State’s hands.  There are far more industries that government has dipped its hand in that should turn to the free market, but cannot be discussed here for the sake of brevity.

Conclusion. 

            In conclusion, Michigan must eliminate tax burdens, especially the Single Business Tax, as well as burdensome regulations, in order to compete with other states in attracting business investment.  Only when we compete through providing greater liberties and freedom shall we develop a strong state economy.  Put simply, Michigan must get out of the way of business.

            Further, any consequential loss of revenue shall be offset by the elimination of state interest in wasteful programs and the outrageous pursuit of non-violent criminals who have not harmed another citizen or another citizen’s property.  We must limit our government to grow our economy and our individual freedoms. 

            Unlike Republicans and Democrats, Libertarians understand that freedom is the key to Michigan’s future.  I will implement these solutions, freeing private businessmen to build a strong economy.  And so, I ask for your vote on November 7^th, for the future of Michigan.