Michigan Small Business Not Surprised by State's Big Jump in Economic Ranking

Date: April 15, 2014

April 15, 2014 (Lansing) – Michigan’s big move up in a national ranking for
economic competitiveness is a good reason to celebrate even on Tax Day, said
the National Federation of Independent
Business (NFIB)
today.

“Michigan is steadily
moving up the ladder and it’s due mainly to the strong pro-growth consensus in
Lansing,” said NFIB Assistant State
Director Amanda Fisher
.  “Michigan is
definitely turning heads and ultimately that’s a good thing for our economy.”

The American Legislative
Exchange Council (ALEC) today released its 2014 Rich States-Poor States
Economic Competitive Index, which ranks states based on number of factors,
including tax rates, labor laws and regulations.  This year Michigan moved up in the ranking from 20th to 12th
mainly on the strength of the Right to Work law enacted last year.

“Right to Work was a
dramatic accomplishment for Michigan and it resulted in a dramatic move upward
in the ranking,” said Fisher.  “It made
Michigan immediately more attractive as a place to grow or locate new
businesses and in a 21st Century Economy that’s critical.”

Before passage of the
Right to Work Law, all employees in Michigan whose workplace was unionized were
required to join the union and pay dues. 
Moreover, every business in Michigan whose workers were unionized was
required to act essentially as the dues collector for the union.

“Most of the job growth
and business investment in recent years has been in Right to Work states and
Michigan was falling behind,” said Fisher. 
“Small business owners saw this as an economic imperative.”

Right to Work isn’t the
only improvement to the state’s business climate, said Fisher.

“We’ve been changing the
dynamic in Michigan pretty steadily for the past several years,” she said.  “The Governor’s tax reforms have been very
important along with the changes that we’ve made to the unemployment insurance
system.  The state’s improved fiscal
health is a confidence booster as well because it signals economic stability,
which is necessary for new investment and job creation.”

“Governor Snyder and
legislative leaders deserve a lot of credit for having passed the law despite
very hostile opposition and it’s had a very dramatic effect on our reputation
as a place to do business.”

For more information about
NFIB, please visit www.nfib.com.

 

 

Related Content: News | Economy | Michigan

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