Political News and Commentary with the Right Perspective. NAVIGATION
  • Front Page
  • News
  • Multimedia
  • RSS Feed


  • Tax Hike Wall of Shame























    Looking for work? Try Hollywood or... American Axle?


    By Nick, Section News
    Posted on Mon Mar 31, 2008 at 07:22:29 AM EST

    Opening Day.  Of course it's raining in Grand Rapids right now and it's supposed to rain most of the day in Detroit and the mist, sort of lingering there in the air, is trying it's best to dampen the perfect idea of Opening Day.  We might even have to move the actual game to tomorrow.  Fingers crossed and knock on wood.  We can't really wash out the first game of the year, can we?  It wasn't all that long ago we were playing in snow.

    Frankly, though, the rain's a little more than welcome.  Mix it with the hopes and dreams of a new baseball season, warmer temperatures and it's propensity to wash away the last little mounds of snow from the front yards and spring is finally arriving in earnest, bringing with it a brand new start.  Ladies and gentlemen, consider it New Years Day Take 2.  Rebirth, recreation, renewal... all that crap.  

    And it's worth enjoying.  "Promise" doesn't come along all that often in the Great Lakes State lately so we should grab it and hold on tight while we can.  Especially with the jobs outlook being what it is and the inevitability of daily reminders on the news and in the paper.  Because the storm clouds?  We get plenty of those.  Take the Detroit news, for instance.

    Today they've published the annual puff piece about students looking for summer jobs.  You've read some variation of the same article every year as long as you've been reading the paper.  Unfortunately the last few editions of this particular story have been particularly bleak and they just keep getting worse.  This year college and high school kids aren't just competing for fewer jobs, they've got to put up with hard-to-reach expectations from employers who find themselves dealing with another spike in the minimum wage and looking to get all the bang they can manage for the buck.  Not like they don't have a massive labor pool to choose from.  If they're hiring in the first place.

    Read on...

    Few businesses plan to hire workers in the next few months in a state with the highest unemployment rate in the nation at 7.2 percent. That means teens will be competing for scarce summer jobs alongside veteran workers who are unemployed or are looking for a second income to help pay the bills. They'll also get competition from teens who have never worked before, but are feeling the pressure to chip in for their own living expenses to ease the strain on tight family budgets.

    On top of that, a 25-cent increase in the state minimum wage goes into effect July 1, bumping it to $7.40 an hour. That could lead to further cutbacks in part-time and entry-level jobs as businesses look for ways to meet costlier payrolls...

    Gary Martin, owner of Stroh's Ice Cream Parlour in St. Clair Shores, says he won't be able to hire as many teens this summer because of the wage increase. Last year, he hired two employees to help the 14 year-round workers, but this year he will hire only one. He pays all his employees at least minimum wage.

    None of that is to say there aren't a few jobs out there, though.  What with the fresh start of spring and all...

    And in keeping with new starts we've even got major Michigan businesses throwing the reload switch today.  The news broke late yesterday that American Axle, crippled now for more than a month by a protracted UAW strike, is done playing games and they're looking to hire replacement workers.  Actively looking.  Though they didn't advertise in the college papers.  The Associated Press reports:

    An ad published in the classified section of The Oakland Press of Pontiac read in part: "Employment offered to applicants responding to this advertisement will be to fill anticipated attrition replacement openings after negotiations or in place of employees involved in this strike..."

    American Axle also has sent letters to UAW-represented workers who were laid off before the strike began, asking them to return to work...

    "They're trying to get away with everything they can right now," said Bob Stowell, a member of UAW Local 2093 in Three Rivers. "I think GM might be putting a little heat on them. I don't know how they're going to train these people or anything. ... I think it's just kind of a scare for us."

    Well, Bob, is it working?  You don't want a job that's going to pay you somewhere around $30 an hour between wages and benefits there are literally hundreds of thousands of Michiganders who'd be thrilled to have it.  I know, I know, it's not the $73+ an hour you're making now, according to published reports, but $30 isn't a bad hour's work.  Just ask the workers at every single last one of your direct domestic competitors.

    Still, these might not be the jobs for college kids.  American Axle's probably looking for a little more stability in their workforce after this recent and continuing upheaval.  Besides, they're not exactly glamour jobs.  Kids these days.  (/kidding)

    But hey, maybe all the part-timer-wanna-bes can go to Hollywood.  Or, better yet, stick around as Hollywood comes here!  

    Check this one out, boys and girls.  The Detroit Free Press reports this morning on massive bi-partisan legislation designed to bring the magic of tinseltown to a small town near you.  The Governor's always wanted to be a starlet and since that didn't work out I guess this is the next best thing.

    The key feature of the incentive package is a refundable tax credit worth up to 42% of the cost of production. The size of the tax credit, in many cases, would dwarf any tax liability, the fiscal agency said; the state would write a check to the moviemakers for the difference.

    A $100-million movie could be eligible for a subsidy of about $40 million.

    That led the fiscal agency to conclude that any additional revenues (say business, income and sales taxes incurred by the production company) "would be unlikely to offset completely, or in some cases, even offset significantly, the cost of the ... credits."

    And when that happens the State, literally, writes the movie maker a check for the difference.  That's right, taxpayers, you'll be paying Hollywood to come visit.  Sort of like reverse tourism.  Or tying a massive pork chop around our collective neck.

    State Sen. Nancy Cassis, R-Novi, the only legislator voting against the incentives, called the refundable credits "categorically unfair" to business owners socked with big increases under the new Michigan Business Tax.

    Gary Wolfram, a former deputy state treasurer who teaches economics at Hillsdale College, said Saturday it would have been far cheaper for the state to just waive taxes for moviemaking altogether.

    As tax policy, the refundable credits are "completely nuts," he said.

    Some folks unencumbered by the weight and pressure of "public service" have raised an interesting point.  If we're going to lose our minds wouldn't it have been slightly less insane to promise movie makers we'd just plain waive the bill?  Wipe the slate clean and tell them they can make movies here for free?  At least then you and I wouldn't be asked to personally pay for them to come visit.  

    Is this the situation we're in now?  We actually have to write a check to get someone to stop by for a few weeks?  Heaven help us.

    But let's not lose sight of the bigger picture here (bigger picture... get it?  Rimshot please...).  Jennifer Granholm, John Cherry, Andy Dillon, Andy Meisner, Gretchen Whitmer, Mark Schauer... the entire tax-hike caucus in both the House and Senate and their big-government pals in the governor's administration are all one-hundred percent on board with this idea.

    They want jobs.  They realize they have to lure jobs.  They're doing that by reducing taxes.  McFly?  Anyone in there McFly?  

    I know the small business down the block isn't as fancy and glamorous as Brad Pitt or freaking Jeff Daniels but are they worth less to the State?  Local boys and girls get stuck with a bigger tax bill while the studs from the silver screen get taxpayer funded rebate checks just to grace us with their presence?  

    Hey, I get it... they come to town they eat at the local diner, they boost tourism, blah blah blah.  Guess what.  But the same principles apply to that parts supplier down in the industrial district.  Start cutting them State subsidy checks to keep their doors open and their employees will keep eating at the neighborhood greasy spoon, will keep paying their mortgages, will be able to afford new clothes for their kids.  

    Then again, the Governor never aspired to be a blue collar factory worker, did she.

    < We are the union! | Monday in the Sphere, March 31 >
    Display: Sort:
    Tax Credit (none / 0) (#1)
    by Rougman on Mon Mar 31, 2008 at 09:02:11 AM EST
    Corporate welfare for Hollywood.  

    Is Lansing insane?

    • Yes. by Nick, 03/31/2008 10:20:57 AM EST (none / 0)
    Church Of Hollywood/Rv Jenny/Equal pay 4 no work (none / 0) (#2)
    by maidintheus on Mon Mar 31, 2008 at 09:32:20 AM EST
    The Detroit Free Press reports this morning on massive bi-partisan legislation...WHAT A JOKE, people!! Our legislature should actually be referred to as members of The 1st Church Of Hollywood. As (so called) movie goers stay away from their senseless, factless, propaganda films, they have a work around to our freedom of choice. Nothing new there! What a perfect pastor they have in Rev. Jenny. If we don't support Hollywood on the level they see fit, they will force us all to pay servitude anyway and hope no one realizes this, too, is illegal. Some of these people should have to live under the conditions they project unto others before they're allowed to submit bills and enact legislation. We can example Bob Stowell by having him and his ilk, who support this type of crap, work under the conditions of their favorite economic platforms, like manipulative wage aka minimum wage. I wonder how bad it has to get before people not only move out of MI but move out from under a rock, where facts and results are ignored and the blame game reigns supreme, to the land of what works. Maybe the important thing isn't what works, it's only important that things line up with a pet agenda. Perhaps they have a point and it doesn't matter if there are people who don't have jobs. Being gainfully employed doesn't matter because if you don't work you can still eat. Perhaps those who do work should not be allowed to bring anything home for an after tax expenditure so we can really make it "equal" and distribute it ALL among everyone via a program. I know that would beg the question, how long would we have anyone working, but this can't be an important enough question for us to not abandon the idea that the real problem is in making things equal. Surely, someone, somewhere, owes all of us a living. Perhaps everyone should put their energies into joining this mass of rock dwellers. I know...lame. Who cares about our pocketbook, freedom, the rule of law...and sh__ like that, anymore.

    Display: Sort:

    Login

    Make a new account

    Username:
    Password:
    Join the RightMichigan.com Facebook Group HERE!
    Tweet along with RightMichigan by
    following us on Twitter HERE!
    create account | faq | search