Lori Levi
Republican
House Rep 21st district
Wayne County
Why are you running for office?
I am running to be a voice of common sense. With experience both as employee, self employer and small business owner I see how legislation is killing jobs. I get it.
What is the biggest problem facing Michigan residents today and how would you solve it?
Jobs First, Jobs FAST!
There is no greater single factor that drives our economy than the ability to provide jobs for people. The government does not create jobs - the government influences an environment that is either helpful or harmful to job providers. Our current administration has made it very difficult for job providers, thus creating the second highest unemployment rate in the nation. Michigan’s job losses account for nearly HALF of all jobs lost in the U.S. from 2000-2009.
Small businesses are the driving engine of an economic recovery and our policies must support and encourage entrepreneurs and small business owners. An unfair tax system and laws and regulations that discourage job growth are stifling job creation in Michigan.
The problems are systemic and we cannot tinker around the edges. It will take bold changes in our state’s tax and regulatory structures to create a business climate in Michigan that supports our existing businesses while encouraging new entrepreneurial start-ups and welcoming business development from outside of the state. Some of the most immediate things we can do to accomplish this include:
Repeal the MBT surcharge on business
Lower personal income tax over time
Reduce business tax across the board for ALL businesses, not just specific industries - the government cannot pick winners and losers
Reduce Regulation - "Michigan is a regulatory and tax nightmare" according to many CEO's looking to expand into Michigan
Create a Customer Service Liaison
Create a "Welcome Home" environment and attitude
Consult credible resources - study healthy communities for viable solutions
MBT (Michigan Business Tax)
The intent of the MBT was to simplify the business tax structure, redistribute the tax over a larger base and make Michigan’s business climate more competitive. However, in practice, the MBT and the 22% surcharge have imposed an excessive tax burden on businesses, with some experiencing a tax increase of 200% - 600%.
In addition to restructuring the MBT, the state should also look at other systemic changes to the MBT such as removing the sales tax from the base of gross receipts and eliminating cascading. As before, the challenge remains fixing the inherent inequities in the MBT and surcharge and removing the restrictive tax burden. The inclusion of sales taxes and other taxes and fees in the base of the MBT, the cascading of the tax on the service side and unitary filing and property tax issues are also contributing to the MBT’s negative impact. Additionally, due to the tax’s complexity, compliance costs are often high.
I SUPPORT making systemic changes to the MBT.
Twenty-Two Percent Surcharge
In May 2008 the Michigan Business Tax Impact Assessment Subcommittee held four hearings on the impact of the MBT. The committee found that the MBT, and in particular the 22% surcharge, had harmed virtually every industry, including the manufacturing sector, which it was designed to support.
I SUPPORT eliminating the 22% Surcharge.
What's a better solution: finding revenue or cutting costs to meet Michigan's public education budget? How would you do it?
Both--Without fundamental structural reforms in how we fund and operate our schools our children will be left behind in our increasingly high-tech, complex world.
The first goal of any reform effort should be to ensure that we are funneling every available dollar to our classrooms, where the true education process takes place. This means we must make changes to the system, to the administrative process and to the way we compensate our teachers.
The second goal is to ensure our funding mechanisms are stable. The economic downturn has revealed a basic flaw in the way we fund our schools. As jobs are lost, incomes decline and businesses close their doors, tax revenues drop. This reduction in revenue forces cuts in school funding.
Accomplishing this will require making some hard choices.
Some of the reforms we need to look at include coordination and consolidation of services, privatization, reforms in employee health care and pension programs, reductions in administrative costs, transparency in school and administrative spending and merit pay. While not all of these ideas may ultimately be adopted, we have to start by putting every option on the table.
In order to address the immediate funding problem we must remove the obstacles that prevent our job providers from creating jobs and generating increased revenue. We can start by making changes to our state’s business tax structure.
Reduced unemployment, higher wages and greater profitability will increase our state’s tax base and lessen the financial strain
