Thursday, June 16, 2005

State Unemployment Rate Rises Again

Michigan's unemployment rate rose again in May, to 7.1%. In the mean time, the national unemployment rate continues to decline. It stands at 5.1%.

And the legislature and governor continue to argue over how much more money the state should borrow to "invest" in creating jobs. It's akin to trying to borrow money to invest in the stock market. No financial expert would ever suggest doing so, but our politicians need to look like they're doing something. Past government attempts at picking the economic winners and loser have failed, and they will again.

It comes down to this. Michigan is a high tax state that makes it tough for business to grow. The state single business tax is the most onerous tax in the nation. It taxes businesses even if they don't make a profit. Heck, it even taxes companies when they pay for health care for their workers.

If the governor and legislature were serious about brining business to Michigan, they would do a few things:

  • Eliminate the single business tax
  • Eliminate the cap on charter schools to inject competition in education
  • Reduce state government red tape

    The state house passed next year's budget with no increase in spending and no increases in taxes. Of course, this is sending the governor into a tizzy, who wants to increase taxes on liquor, vending machines, and doctors. Apparently she doesn't get it. Increased taxes kill jobs.

    That Which is Seen and that Which is Not Seen.
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