I was having something of a lousy day until I pulled up the Huffington Post’s latest Detroit headline.
What? Manuel Matty Moroun going to jail, you say, Huffpo? Today just got better.
Moroun is the sole reason for the hold-ups impeding the construction of an additional bridge connecting Windsor and Detroit, a seriously important trade route with our largest trading partner. Moroun owns the only current bridge connecting Detroit to Canada, the Ambassador Bridge, and with it, gleans the significant profits not only from the monopoly he has on transit, but also because he is able to use this as a platform to sell gasoline. In his efforts to prevent a competitor bridge, Moroun bought off Republican state senators and heavily lobbies to protect his interests.
Admittedly, Moroun is not being thrown in jail for these charges. He appeared in court to face sentencing on contempt of court charges because he failed to connect the Ambassador Bridge to neighboring freeways, construction known as the Gateway Project. Wayne County Circuit Judge Prentis Edwards delivered a sentence that placed Moroun in jail pending completion of the Gateway Project. In typical Moroun fashion, he’s tried to wriggle out of this with the aid of his lawyers: he’s tried resigning, and claimed not to own DIBC, the construction company charged with completing the project.
Seriously. Awesome. Moroun has harmed job growth, wasted taxpayer money, and done everything in his power to stop Governor Snyder (who’s done a good job on pressing the issue) from doing what Michigan elected him to do: jobs. Jobs happen with increases in trade. The new bridge will increase trade.
This sentence isn’t about the new bridge, but what is encouraging is that the courts show willingness to hold Moroun accountable. The guy owns the old rail station in Detroit, and is just sitting on it, refusing to sell or allow any improvement to the burned-out building. This isn’t addressing the root of the problem, but at least it’s a step in addressing the failed democratic process that hampers Detroit.
why the new state tax rules will have no effect, other than harming poor people. oh, and old people.Posted: January 4, 2012
That’s a mouthful, but whatever. More importantly, the new Michigan state tax rules going into effect in this month just plain suck. A lot. Governor Snyder and the Republican Senate pushed through tax reforms that will do a few things:
- Most Michigan companies will see a lower tax or no tax in 2012.
- Low income workers will see cuts of up to 70% in EITC (Earned Income Tax Credit).
- Retirees with pensions will now see their pensions taxed.
My response is two-fold. First, the low-hanging fruit: another misleading headline! This article is entitled “New State Tax Rules Good For Business.” Well, actually, according to the report cited in the same (SAME) article, the headline is refuted. The article cites nonpartisan Citizens Research Council, an objective Michigan think tank that publishes reports on issues pertinent to Michigan policymakers. Oh, and they’ve been at it for 90 years:
“The nonpartisan Citizens Research Council concluded in a July report that the business tax cut likely will have a positive effect on business investment and Michigan’s reputation in the business community. But it sees potential pitfalls as individuals pick up the tab through higher income tax payments, reducing their ability to spend in ways that would spur the economy.
“Because of the offsetting nature of these effects, any overall effect on growth, positive or negative, is likely to be small,” the report concluded.”
For some reason, the outcome of this tax reform, that consumers will have less to spend and will offset any business tax cuts to have NO EFFECT, is buried in the article and missing from the headline.
Media responsibility aside, what’s more is that this vital point is also buried in the policy debate. Citizens whose public sector jobs are gone or whose pensions are now taxed have that much less money in their pockets with which they can buy the goods and services that these businesses produce. Not only is the outcome problematic, essentially encouraging no growth in Michigan’s economy, but these tax cuts are unnecessarily unfair, in some cases downright cruel, to the middle class. In order to give businesses tax cuts, Michigan citizens will see their tax credits lowered from approximately $400 to $100. Retirees will now pay taxes on pensions they thought they could count on being untaxed. Talk about uncertainty, Republicans!
The Washington Post came out with a fake-good headline a few days ago about Detroit’s housing market, claiming that:
Among the nation’s top 20 metropolitan regions, only the Detroit and Washington areas posted annual home price increases, according to S&P/Case-Shiller home price data for October released this week.
The key here is that this is not Detroit; rather, this is the Detroit Metropolitan Statistical Area (MSA). As compared to Detroit proper, which comprises 143 square miles, the Detroit MSA comprises the six counties surrounding Detroit, totaling to most of Southeast Michigan. Detroit’s crumbling population doesn’t exceed 1 million; Metro Detroit’s population exceeds 4 million. This trend isn’t occurring in Detroit proper, it is occurring in Metro Detroit.
What’s worse, the article continues:
Improbable as it might seem, the Detroit area is seeing an increase in building permits. Construction firms are dusting off their equipment and returning to work, and bidding wars are breaking out over desirable homes.
Well, okay, this isn’t Detroit, we’ve covered this already, but any increase in building permits and construction aren’t occurring within Detroit. As per Metro Detroit’s sprawl-inducing zoning policies, this growth is occurring admit a vacant housing crisis in Detroit proper, where some estimates list housing vacancies at 30% of the city’s housing stock.
Not all of this housing stock is usable, certainly not new, but the important point is that the infrastructure — the roads, the electricity, the schools — exists in Detroit proper and its nearest suburbs. And it is not being used to its optimum capacity right now. So instead, new construction continues to pull resources away from the natural urban pole to the outskirts of the Metro Detroit area, to places like Romeo, Shelby Township.
The outcomes of this urban policy make no sense, but are incredibly difficult to change. What, have Detroit leaders work with the suburbs? Years of animosity long ago ruined this vital relationship. Institute a smart growth boundary similar to what we’ve seen work in Portland? Tea Partiers in Troy, L. Brooks Patterson, and other Metro Detroit suburbs would never stand for it.
So no, WaPo, this is not a good thing. Detroit proper and Detroit metro do not need new housing construction. They need revitalization of what they have, not the cheap and unsustainable sprawl that their policies encourage.
Except. Well. The most-read news story is not actually news. It’s opinion. That Rick Snyder ‘made a misstep’ is a normative statement, conveying not the facts, but what you should think of the facts.
I am whining about how society gets their news (if they get it at all). Nothing new. Probably irreversible. But to counter normativer with normative, shouldn’t the bottom story be the top story?
The city of Troy has an atrocious track record. In the past ten years, council members denied a vote to host an Ikea in Troy, reasoning the big blue box was an eyesore in a town of strip malls. Under its poor management, Troy has made national news for being a wealthy city considering doing away with its public library.
In its most recent in a string of abysmal decisions, the Troy City Council is delaying a vote to bring a transit center to the city. The project, slated to connect already existing train lines that go between Chicago and Southeast Michigan, will be supported by $8.5 million in federal funds.
However, Troy, yet again, does not get it.
“How do you justify taking $8.5 million from a government that is trillions of dollars in debt?” Janice asks.
Easily. You have to spend money to make money. The government spending money on this project will do a lot to make money for its citizens. And this is good for everyone, because citizens who have money can spend more money. They can afford health insurance, they can pump money into an economy that needs it. In a similar project done in Normal, Illinois another city not exactly the epicenter of public transport, a similar investment furnished $200 million in private investment and 375 jobs.
The Detroit Free Press has it right when they argue that this issue is about more than Troy. Troy’s inability to see the bigger picture, whether that would be t
Troy has a track record of turning down job-creating policies and degrading the public investments that attract residents and keep them. Mistaken ideology, Janice, should not get in the way of a pragmatic policy to help residents needing jobs in your city.
The cancellation of the federally-funded light rail through the Woodward Corridor is not the worst outcome of this project.
The federal funding that was to be spent on a lightrail system intended to connect Detroit to Ferndale will instead be funneled into a suburban bus system. In all likelihood, a suburban bus rail system will better serve Detroiters, namely because 60% of city residents with jobs work outside of the city center.
Lightrail should be more than a pipe dream, but as the Detroit bus system slows, as routes become increasingly erratic, maintaining transportation infrastructure for people to have access to what employment opportunities are available is more crucial than the possibility of garnering what some have termed a “$3 billion investment.” It is likely that investing in lightrail would garner lots more investment than the area currently enjoys; however, achieving higher employment generates higher tax revenues for Detroit, the lack of which is the reason the city lost the federal funding for the Woodward lightrail project in the first place.
The Detroit City Council, by a vote of 6 to 2, voted to not touch their allotted $700,000 per year budgets for office expenses amidst their calls for further concessions from unions and a cut to the mayor’s budget.
If Michigan Governor Snyder needed any affirmation to his decision to begin the review process ultimately leading to an emergency manager for Detroit, then the City Council may as well have raised their hands for an emergency manager in the same way that they voted.
The council members argue that they’ve taken 10% cuts for the past three years. So, too, have city businesses, city workers, city residents, and the constituents who they serve. This is not a time for exceptions, this is a time for the city council to show solidarity by giving up the same cell phones, city cars and perks that their constituents have already done without.
Detroit, this move boils down to how to cast your ballot in for the next city council elections.
Vote for: City Council President Pro Tem Gary Brown and Councilwoman JoAnn Watson.
As for the rest?
I’m taking suggestions. I’m sure there’s a cushy board position around there somewhere. Maybe check out vacancies at Metro Airport?