LANSING – Michigan’s tax burden is too high to compete with other states, let alone other countries, and if lawmakers want to see a dramatic shift in the state’s economy in the New Year, they should cut the Michigan Business Tax by 50 percent, panelists at the Business Leaders for Michigan and The Center for Michigan summit said Monday.

Ronald Pollina, president of Pollina Corporate Real Estate, also suggested Michigan’s adoption of a right-to-work law would have an immediate effect on companies making decisions on where to invest. But Patrick Devlin, CEO of the Michigan Building and Construction Trades Council, said the right-to-work issue is “window dressing” and has no effect on a company’s bottom line.

Devlin said their members, with the skills they possess at the wages they are paid here, can go and compete in right-to-work states. He said the issue is divisive, which is what Governor-elect Rick Snyder has said, and labor needs to at the table when it comes to helping boost Michigan’s economy.

Doug Rothwell, president and CEO of Business Leaders for Michigan, said his group advocates for the 50 percent cut to the MBT just to make Michigan an average state when it comes to taxation, although he added Michigan shouldn’t be in a “race to the bottom” when it comes to the tax question. The state currently ranks 48th in taxation, he said.

He also said the state has been too focused on investing directly in companies it believes will be drivers for Michigan’s economy when often the better option would be investing in incubator programs that help all entrepreneurs.

Pollina, whose company releases a report on state’s competitiveness each year, said Michigan has steadily declined from 7th in 2004 to 31st in the company’s 2010 report. While companies look at a variety of factors when determining where to locate, from taxation to infrastructure and education to economic development tools, Michigan has fallen behind in recent years when it was once a leader.

“Movies are great, but they’re here and they’re gone,” he said.

He said while his company has placed businesses in Michigan and helped a number of companies stay here, looking forward there must be more cohesion when it comes to the state’s economic development apparatus. That starts at the governor and legislative level all the way down to the locals, he said.

“When we look at Michigan, we don’t see that, a real team effort,” Pollina said, adding North Carolina, South Carolina and Virginia all work collaboratively.

While Michigan isn’t the only state facing problems today in terms of competing for jobs with other countries, what happens during the transition between administrations is key, he said.

Pollina Corporate Real Estate is currently doing a study for the Michigan Economic Development Corporation regarding the state’s competitiveness with neighboring states and Mr. Pollina noted there was no one in Wisconsin’s economic development office right now who could answer any questions.

He advised Michigan not to follow the same route and said having a system of public and private economic development groups is key to avoiding those issues.

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