Cut business tax, no new jobs

Robert Kleine used to be the Treasurer of Michigan. He wrote a commentary for last Sunday's Free Press (yeah, I'm that far behind). He says reducing business taxes in the state by $1.7 billion hasn't created any new jobs -- which was the reason to pass that bill. His reasons:

* To replace the lost revenue to the state (or most of it) income taxes were raised. That reduced disposable income and lowered demand for goods and services. It is that demand that drives employment.

* Most business sectors aren't sensitive to tax changes. If a flower store moves from Ann Arbor to Indianapolis for better taxes they won't be selling to Ann Arbor residents anymore. And another store will. Taxes do affect manufacturing, but only 18% of the tax relief went to that sector.

* Business taxes are too small to make enough of a difference to influence what a business does.

* The state's job losses at the start of the Great Recession were because the auto industry crashed, not because the tax laws had businesses paying too much.

Let's use the money we now give to businesses to rebuild infrastructure. Gov. Snyder has been calling for increased infrastructure spending but the legislature can't seem to find the money. But spending money on infrastructure will increase jobs.