One of my chief priorities is make to Michigan a top 5 business climate, regardless of who is doing the measuring and what is being measured. Michigan needs to be considered among the most friendly to entrepreneurs and all businesses, for both current Michigan based and potential relocations. The reduction of tax rates and regulations are a major component to making this so.

Of the two major parties it is well established that the Republican party is the "low tax party", or at least is has been so in the past. The Party has not always explained well enough why low taxes are so important to both our liberty and our economy.

Few individuals would argue that government should not have to be efficient and responsible with the tax dollars that it collects and spends. Democrats, Republicans, Libertarians, independents, etc. all demand that government expenditures should provide the maximum benefit for each dollar spent. Melding the two concepts of efficiency and low tax rates may seem foreign to some, but they are related in a very simple manner.

Low tax rates are important not only because they are a crude measure of liberty, but also because low tax rates provide for maximum efficiency in spending.

Taxes are collected from businesses and individuals, when taxes are imposed on the individual (ex. sales tax) the result is a reduction in buying power. Similarly, taxes levied on producers results in reduced incentive to produce goods and services. Standard economic models assume that all tax dollars collected are then distributed and spent resulting in dollar for dollar benefits. This assumption neglects the expense of both government employees and systems costs that are incurred in the collection and distribution of funds. Further, and yet more faulty, is the assumption that the government and other recipients spend the dollars as efficiently as the earner of those dollars.

The republican low tax message is borne out of this fact, that efficiency in spending is best accomplished when spent by private individuals, businesses and other non-government enterprises.

Another manner in which this can be viewed is that all transactions are votes. Each time one makes a purchase a vote is cast for that product or service--implied in this transaction is that the purchaser is deriving a greater benefit from the good or service than its cost--the same assumption cannot be made for government purchases. In fact, government expenditures are measured not in their effectiveness or benefit, but merely on the amount spend.

Much more could be said about the importance and benefits of low tax rates on all citizens and businesses, but let it be said that I will never support an expansion of tax rates or government fees.