Whether we realize it or not, new laws are being made every day. Often, these laws pass through legislation without notice; it's not until we see their effect on our lives and businesses that their full impact is felt.
As a small business owner, I've learned that there are only two approaches to take when it comes to our relationship to the political process. You can either: sit back, watch, and hope for the best; or do something proactively within the process and press for positive improvements to the system.
It wasn't until late 2007 that I realized just how important it was to become engaged in the political conversation. That year, Michigan lawmakers voted in favor of a six percent tax to "non-essential" services to generate revenue lost during the moves
from the SBT.
For some industries, like dental offices, beauty salons, and mine (technology services), the new law posed an interesting dilemma: which services are "essential," and which are "non-essential?" Obviously, people need to get haircuts, fillings, and computer repairs. But what about dental whitening, hair color treatment, and wireless printing? Did our elected officials overlook the fact that most small and mid-sized businesses offer a combination of both essentials and non-essentials? Or is it possible that they had not considered how complicated such a transition it would be for the nearly 500,000 businesses that would have to sort through complicated accounting adjustments.
The situation was a mess, but as you may remember, there is an upside to this story. The 6 percent service tax that was enacted on December 1st was repealed the following day. How did this happen? How can an idea become a law, only to be nullified overnight? There was only one way: the people had to take action.
Groups of like-minded individuals joined political action committees (PAC) and rallied against the legislation. They held extensive dialogue, wrote their representatives, filed petitions and gathered thousands of signatures. Just like the Teachers Union has done so many times, Michigan's business owners, employees, and consumers banded together to fight against a law that would have adversely impacted the state. The people made a stand and our voices were heard - and when that law was overturned, it was exhilarating! The passage of this law and its quick dissolution galvanized my interest in proactive political action on the part of business.
The fact is that there may be hundreds of such laws, rules and regulations that are or could be adopted by our state and local government every year. Many of these laws and proposed laws have a direct effect on businesses in Southeast Michigan. Many business owners are unaware of these laws and many more are unable to make time in their hectic schedules in order to be present in Lansing to fight for their needs. Political action committees - like the Detroit Regional Chamber's PAC - who fought against the 6 percent service tax - exist so that citizens like us can be participants in the political process.
Many of the board members are CEOs, like you, who in addition to their business commitments generously donate their time and money to produce positive change and a more favorable business climate in Michigan. There are a variety of ways in which you too can contribute. I urge you to learn more. That way, the next time a big issue is on the table, you will be ready to step in and engage the problem. Otherwise, you'll end up taking a chance on the political sidelines, watching the process play out, and hoping that this round of decisions fall in favor of your business.
For more information on how you can help make our state a better place to do business, or to make a donation in support of the work the Detroit Regional Chamber's PAC is doing, go to www.vote4biz.com.
Bruce McCully is president of Dynamic Edge.












