DETROIT -- Business growth in Metro Detroit -- new ventures and expansion of existing ones -- fell dramatically in the past 12 months compared to the previous year, reflecting the region's slumping economy and uncertainty for much of the year over the state's plans for a new business tax.
Business investment in Southeast Michigan fell from 73 expansions or new projects worth $449.7 million and 2,775 jobs from July 2005 through July 2006, to 45 ventures worth $66.3 million and 644 jobs in the past 12 months, according to a report the Detroit Regional Economic Partnership released Wednesday at its annual luncheon.
And why did investment plans get put on hold?
Uncertainty over how businesses would be taxed by the state was a serious detractor to business development for most of the past year, said Dana Johnson, economist with Comerica Inc.
State legislators and the governor wrangled for months over a new business tax structure, and finally approved one in late June.
"The state was making it extremely hard to attract businesses by not having a tax in place," he said. "How can someone commit to coming here when you can't tell them how they'll be taxed?"
He also noted that without a business tax in place, it was difficult to develop tax breaks to lure businesses.
The Detroit News article tells us that things are in the pipeline and growth is once again expected in the region, but the fact is that the irresponsible fiscal behavior of Michigan Republicans cost us time, jobs and money - all for an election gimmick.
So, when Republicans claim that they know what is best for Michigan now, how can you trust them?
Food for thought.