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  • 1. TOWN HALL FORUM Topic:Michigan Tax Structure & Jobs Creation

2. Abes Story

  • Born in Aleppo, Syria to a Catholic family, it was difficult growing up as a practicing Christian in a Muslim country.
  • In 1966, immigrated to the U.S. to an upstate New York town not knowing the language or the customs of the new world.

3. Abes Story

  • As a result, Abe had to work hard with no money to pay for school, education, or other survival needs.
  • In 1970, Abe graduated from LSU with a Bachelor of Science in Civil Engineering degree.
  • After graduation, he went to work as a design engineer in Baton Rouge, LA.

4. Abes Story

  • Shortly thereafter he married Darlene Kali, a native of Detroit, Michigan, and they settled in Southeast Michigan.
  • Married for 39 years, they have 2 adult daughters and 2 granddaughters.

5. Experience to Turn Michigan Around

  • In 1972, Abe was employed by Ayres, Lewis, Norris & May, Inc. (ALNM) in Ann Arbor, MI.He climbed the ladder, and in 1985 became the President of the firm.
  • Abe was the rainmaker and jobs creator, and under his leadership, ALNM expanded and grew from 31 employees to 152 employees when he retired in 2004.

6. Experience to Turn Michigan Around

  • During his time at ALNM, Abe created 121 jobs in Michigan.There were high-paying engineering and technical jobs.
  • His accomplishments have been recognized by:
    • National Council of Examiners for Engineering & Surveying
    • Michigan Water Environment Association
    • State of Michigan Board of Registration for Professional Engineers
    • National & Michigan Chapters of the American Council of Engineering Companies (ACEC)
    • Congressional Recognition from U.S. Congressman Thaddeus McCotter

7. A Self Made Man

  • Abe did not inherit anything.He pulled himself up by the straps of his boots and achieved the American Dream.
  • He grew a family, created jobs, and is a true Christian and Catholic in his upbringing.

8. Abes Foundation Plan Engineering a Plan to Create Michigan Jobs 9. Abes Foundation Plan

  • 10. Lansing is the Peoples Capitol
    • Tougher lobbying rules and control of special interest!
  • 9. Michigan is a Destination State
    • Promote our natural resources!
  • 8. We can Have Better Health Care
    • Allow for more competition.

10. Abes Foundation Plan

  • 7. Transportation Policy that Work for Us
    • Our roads should come first!
  • 6. You Should Always Feel Safe
    • Work with local governments to improve our police and fire protection.
  • 5. Energy Policy for Today and Tomorrows Needs
    • Allow for Michigan to pioneer alternative and traditional energy opportunities.

11. Abes Foundation Plan

  • 4. Improving Public Education
    • Demand accountability and allow for competition for everyone.
  • 3. Get our Moneys Worth
    • We need a more transparent Lansing.
  • 2. Reducing Taxes for ALL Michigan Taxpayers
    • Reduce regulation and evaluate current tax policy across the board.

12. Abes Foundation Plan

  • 1. Jobs are Job ONE!
    • Improve business climate by ending unnecessary regulation.
  • Engineering a Plan to Create
  • Michigan Jobs to put
  • Michigan Back on TOP!

13. Why Jobs are Job ONE!

  • Michigan has thehighestunemployment rate in the country, at14.6%
  • Wayne County unemployment rate is16.1%
  • Michigans unemployment rate is higher than it has been since the 1980s!

14. U.S. vs. Michigan Unemployment Rate 15. A Right to Work State 16. A Right to Work State?

  • The basic concept of a right-to-work law is simple:
    • Workers should not be obligated to join or give support to a union as a condition of employment.

17. A Right to Work State?

  • Economies ofright-to-work statesbetween 2001 to 2006grew by an average of 3.4%compared to2.6% for non-right-to-workstates and0.7% for Michigan
  • Jobsgrew by 1.2 percentannually inright-to-work states , compared to0.6% for non-right-to-work states , whilejobs decreasedby an average of0.8% in Michigan .

18. A Right to Work State?

  • The gap in per-capita disposable income continues to shrink, to the point where most right-to-work states are likely to have higher incomes than Michigan does within a few years.

19. A Right to Work State?

  • Trends between 2001 and 2006 were more favorable towards right-to-work states than they had been in previous years.
  • In light of Michigans current economic difficulties, the leads to the conclusion that the case for making Michigan a right-to-work state has only become stronger!

20. Prevailing Wage Law 21. Prevailing Wage Law

  • Michigans prevailing wage law requires:
    • Contractors on state-supported construction projects pay union wages.

22. Prevailing Wage Law

  • This law was passed when union workers constituted a majority of Michigans construction work force they represented just22.1% in 2006 .
  • The prevailing wage now forces contractors to pay wages that average40%-60% higherthan those found in the marketplace.

23. Prevailing Wage Law

  • This lawincreasesthe cost of construction by10%-15%and the additional costs are passed along to Michigan Taxpayers.

24. Prevailing Wage Law

  • In 18 Stateswithout prevailing wage lawsin 2004, construction workers made up5.3%of the work force, compared to4.2%for stateswith strong prevailing wage laws .InMichigan it was only 3.7% .

25. Prevailing Wage Law

  • Studys show the temporary suspension of Michigans prevailing wage law in the mid 1990s was responsible for thecreation of an additional 11,000 construction jobsbetween 1994-1999

26. Prevailing Wage Law

  • Given the evidence on the effect of prevailing wage laws, the states economic difficulties and the changes that have taken place in the labor market,Michigans prevailing wage law should be REPEALEDor at thevary least overhauledto reflect the current state of the construction industry and eliminate unnecessary costs to Michigan Taxpayers.

27. Repealing the prevailing wage law

  • Repealing the state prevailing wage law would havesaved taxpayers an estimated $250 millionin 2007.
  • Repealing the local prevailing wage law could havesaved another $19 million .
  • Exempting just the public school districts from the law would havesaved $126 millionin 2007.

28. The Michigan Business Tax 29. Michigan Business Tax

  • Michigan residents and job providers were given another reason to consider moving:
    • Anew complicated business tax(Michigan Business Tax) to replace the old complicated Single Business Tax (SBT).
    • AService taxthat was passed and repealed.
    • A$1.4 billion net tax hike(a surcharge added to the MBT roughly $614 million)

30. Michigan Business Tax

  • Slashes Auto Industry taxes from $57.4 million to $1.4 million, which is offset by taxes on many non-manufacturing small sized businesses.

31. Michigan Business Tax

  • The MBT was enacted to replace the Single Business Tax (SBT), but could we have replaced the SBT with nothing and not devastate the budget with a loss of $1.885 billion?
  • The answer is:YES

32. The Bloated Public Sector 33. The Bloated Public Sector

  • According to data from the Bureau of Labor Statistics and Michigan Civil Service Commission, Michigans state and local government full-time employees are getting$5.7 BILLIONmore in benefits than if they were in a similar position in the private sector.

34. The Bloated Public Sector

  • Michigans private sector decreased 12.1% of its jobs since 2000 (484,200 jobs), while Michigans public sector has droppedonly 6.1%and theState government and state enterpriseslike universities actuallyexpandedtheir workforce.

35. The Bloated Public Sector

  • Since 2001, the State of Michigan has disproportionately increased its average annual pay rate by26% for state government workersand by20% for local government workers , compared to15% for Michigans private sector .

36. The Bloated Public Sector

  • However, wages are not the greatest inequity, the benefits paid on top of elevated salaries is.
  • Michigans Civil Service workforce received benefits worth an additional37.95% of salary in 2000 . That figure had grown to 58.15% by 2008 , while the Private sector are worth43