LANSING – As a political advocate and lobbyist for the Small Business Association of Michigan (SBAM), there are two recurring complaints I hear from our members about our state. (1) The tax system in our state is ridiculously confusing and unfair and (2) the regulations Michigan keeps putting on small business represent another layer of taxation (fees, fines and rules) that are hindering, not advancing, Michigan’s economy.
In fact, SBAM?s latest quarterly Small Business Barometer survey finds that only 12% of small business owners give a positive rating to the fairness of the tax system. Only 21% have a positive view of Michigan?s regulatory environment. They only want one message sent to policy makers, ?I love my state, but you are making it easier for me to leave than to stay.?
How is this message being answered? It appears policy makers may be prepared to begin tax reform, but will it be too little too late? To make matters worse, a government committee has spent the better part of two years trying to draft more regulations. This committee has been drafting new ergonomic rules to prevent hazards in general industry. An ?ergonomic hazard? means conditions where intervention may be necessary to prevent harm. No one seems to have an answer as to why this became a priority, but ?someone? in government thought it was a good idea. I hear more complaints about a 7% and rising unemployment rate then I do about sweatshop-style working environments. Apparently this ?someone? is deaf to the cries for tax reform and the elimination of red tape.
The ergonomic rules are being drafted by the Department of Labor and Economic Growth. The good news is that no rules have been adopted (yet); the bad news is they are still drafting the rules and it has taken over two years to arrive at their twelfth draft, and you know that can?t be good news. The best news of all is legislators like Rep. Rick Jones (R-Grand Ledge) heard the pleas of small business and sponsored legislation to stop these new ?rules? from seeing the light of day. Unfortunately, this legislation was vetoed when it got to the governor?s desk.
?I support small business? is an assertion around the capitol that is not backed up with a lot of proof. Over half of this state?s jobs come from the small business sector and that is only going to increase in the 21st Century. Yet the state of Michigan wants to roll out the red carpet to the 21st Century and cover it with more arcane rules and regulations. The reception job providers get from this state is colder than our winters. The flip side is the warmth of open arms from places like Nevada and Arizona ? where there?s a climate of job creation and not just desert heat.
Wouldn?t it be nice if our state cleared the path of tax burdens and arcane regulations in order to help stop the decline of Michigan?s entrepreneurial dynamism? No, instead they feel compelled to draft language and add paperwork, fines and further regulations on the entrepreneur ? the 21st Century job provider.
Contrary to what labor unions and the bureaucracy believe, business owners do not operate sweatshops. Entrepreneurs know one of the secrets of prosperity is to have healthy, productive and safe employees. The idea of new rules only shows that the state has less faith in employees? abilities than do entrepreneurs. I wonder if it has anything to do with the daily interaction they have with them? Maybe government types cannot begin to understand the concept that employers and employees work together instead of being locked in the politics of polarization.
So, as the government continues to add to the complexity of regulations to make sure people are protected from themselves, small business owners are left asking, ?what government entity is drafting rules to protect small business from the hazards afflicting Michigan?s entrepreneurial spirit??
Paul Bukowski is SBAM?s Director of Political Involvement. He can be contacted at (800) 362-5461.
