The Magazine of the Mackinac Center for Public Policy | JANUARY/FEBRUARY 2021

Collage of the three main items - certificate of need, nursing - education, online school, hybrid learning - election stuff, voting, electoral college

(same art for article on p10) MACKINAC CENTER

HAS BOLD AGENDA

FOR 2021 PAGE 10

Mackinac Center Introduces 2021 Might Be a Banner New Council of Health Year for State-Led Worker Care Providers Freedom Efforts

PAGE 7 PAGE 9 The Mackinac Center is creating a network of people, like you, who want to see become a better place to live. If you're interested in learning more, please visit OpportunityMichigan.org today.

2 January/February 2021 IMPACT IMPACT January/February 2021 3 Board of Directors

Hon. Clifford W. Taylor, J.C. Huizenga LETTER FROM THE PRESIDENT Chairman President, Westwater Retired Chief Justice, Group Michigan Supreme Edward C. Levy Jr. Court Executive Chairman, Joseph G. Lehman, President Edw. C. Levy Co. Civic Virtue as Leverage Mackinac Center for Rodney M. Lockwood Jr. Public Policy President, Lockwood Jim Barrett Construction Company, Retired President Inc. & CEO, Michigan Joseph P. Maguire Chamber President, If this column were always about the crisis to step down from its advisory board over a of Commerce Wolverine Development Dulce M. Fuller Corporation of the moment, I’d have plenty of topics to policy disagreement.) Owner, Woodward and Richard D. McLellan Maple Attorney, McLellan Law choose from now. A violent incursion into the Daniel J. Graf Offices I believe the “prime directive,” if observed by Chief Investment D. Joseph Olson U. S. Capitol. A historic second impeachment Officer, Amerisure Retired Senior Vice everyone, would defuse nearly all the crises I Mutual Holdings, Inc. President and General of a president. Thousands of armed National Richard G. Haworth Counsel, Amerisure named. This can’t be achieved by command or Chairman Emeritus, Companies Guardsmen in downtown Washington. Haworth, Inc. fiat. It has to be modeled. People must adopt it Reports of planned disturbances at state because they see it as the proper way to behave capitols on Inauguration Day. A fractured civic Board of Scholars to restore constructive discourse instead of fuel culture marked by soaring levels of contempt Donald Alexander Dale Matcheck corrosive conflict. Western Michigan Northwood University for one’s political counterparts. A raging, University Charles Meiser Thomas Bertonneau Lake Superior deadly pandemic. Ham-fisted lockdowns SUNY - Oswego State University (ret.) Our work normally involves challenging the Brad Birzer Glenn Moots and cruel suppression of civil liberties and status quo and the plans of others to expand Northwood University livelihoods. And more. Peter Boettke George Nastas III government. But we don’t personally attack the George Mason Marketing Consultants University defenders of the status quo or the proponents Todd Nesbit Optimism isn’t my first reaction to that Theodore Bolema Ball State University Wichita State University of expansive government. John Pafford catalog of catastrophes, but as president of the Alexander C. Cartwright Northwood University Ferris State University (ret.) Mackinac Center, it’s my job to find a way to We presume goodwill whenever possible, we Michael Clark Mark Perry Hillsdale College University of Michigan turn bad things around and advance the good. - Flint acknowledge what our opponents get right, Matt Coffey Central Michigan Lawrence W. Reed and we admit the limits of our own policy University Foundation for What does that look like now? There is no Economic Education Dan Crane prescriptions. We don’t automatically ascribe University of Michigan Gregory Rehmke research paper, no policy forum, no lawsuit, no Law School Economic Thinking/ evil motives to our opponents’ ideas and we E Pluribus Unum Films model legislation to address all that ails us, and Shikha Dalmia Reason Foundation Steve Safranek don’t get personal. Even if we hit hard, we Private Sector no silver bullet that eliminates even one of our Chris Douglas General Counsel hit fair. University of Michigan pressing problems. - Flint Howard Schwartz Oakland University Jefferson Edgens One think tank modeling civic virtue is no University of Wyoming Martha Seger I spoke with a former corporate crisis Federal Reserve Board Ross Emmett (ret.) silver bullet. But we can’t expect others to do Arizona State University communications expert last week. Her counsel James Sheehan Sarah Estelle SunTrust Robinson what we won’t do ourselves, and it’s hard to Hope College to CEOs who are (fairly or not) on the hot seat Humphrey Hugo Eyzaguirre have hope that leads to optimism without a Rev. Robert Sirico was “go back to home base.” Tell the people Northern Michigan Acton Institute University broad and renewed commitment to the basic Bradley Smith what core values and competencies you can Tawni Ferrarini Capital University Law Northern Michigan dignity of all people, regardless of what views School bring to bear on the crisis. University ¬ Chris Surprenant they hold. Burton Folsom University of New Hillsdale College (ret.) Orleans Our long-term readers know our bedrock John Grether Jason Taylor Northwood University Central Michigan commitment to free-market policies as a way David Hebert University By Joseph G. Lehman Aquinas College to advance liberty and prosperity for all people. John Taylor Michael Hicks Wayne State University Ball State University But our true leverage underlies even that. Richard K. Vedder Joseph G. Lehman is the president of the Ormand Hook Ohio University Mecosta-Osceola ISD Harry Veryser Jr. We won’t persuade anyone of the efficacy Mackinac Center. Harry Hutchison University of George Mason Mercy of free-market policies without a more University School John Walter Jr. of Law Dow Corning fundamental commitment to civic virtue. David Janda Corporation (ret.) Institute for Mike Winther Brink Lindsey of the Niskanen Center says Preventative Institute for Principle Sports Medicine Studies the “prime directive” of democratic civic Annette Kirk Gary Wolfram Russell Kirk Center Hillsdale College virtue is, “Treat all your fellow citizens, David Littmann Mackinac Center for regardless of their political views, as your Public Policy civic and political equals.”

140 West Main Street, P.O. Box 568 Brink and I were once colleagues at the Midland, Michigan 48640 libertarian Cato Institute. I especially like 989-631-0900, Fax 989-631-0964 www.mackinac.org [email protected] to quote Brink in this context since the Niskanen Center and I have not always IMPACT is published six times a year by the Mackinac Center for Public Policy, a nonprofit, nonpartisan, tax-exempt research and educational institute classified under section agreed. (Niskanen’s president kindly asked me 501(c)(3) of the IRS code.

JOHN LAPLANTE Editor

ILIA VANDERHOOF Designer IMPACT January/February 2021 3 INSIDE THIS ISSUE

3 Civic Virtue as Leverage

6 2021: Playing the Cards We’re Dealt

7 Mackinac Center Introduces New Council of Health Care Providers PAGE 10 8 Mackinac Center Recommends Flex Learning Plan to Reshape K-12 Education

9 2021 Might Be a Banner Year for State-Led Worker Freedom Efforts

10 Mackinac Center Has Bold Agenda for 2021 PAGE 8

12 Mackinac in the Media

13 Make a New Year’s Resolution to Plan for Possible Taxmageddon PAGE 7 14 How’d a Girl Like You End Up in a Place Like This?

16 Introducing: The Scoop

PAGE 14

BLOG DATABASES CAPCON Keep up-to-date on the Labor contracts, superintendent salaries, Michigan Capitol Confidential is the latest policy stories from school grading and more. Our online news site of the Mackinac Center Mackinac Center analysts. databases provide easy access to that provides unique news coverage. Mackinac.org/blog important information. MichCapCon.com Mackinac.org/databases 4 January/February 2021 IMPACT IMPACT January/February 2021 5 Virtual Events Keep Citizens, Lawmakers Informed

The COVID-19 pandemic has created many unknowns for everyone. Despite this, the Mackinac Center has ensured that events continue, even if in a different format. For now, Mackinac Center events will continue in a virtual format, while remaining free for viewing. To find out more about new events or to view archived ones, please visit Mackinac.org/Events.

January January 19 27 Talking Michigan Taxes: Potential The Consequences of COVID Lockdowns Increases and Reforms in 2021 Gov. took unprecedented actions in At the beginning of the last legislative term, Gov. response to the outbreak of the COVID-19 pandemic. Gretchen Whitmer proposed a large tax hike: a 45- The legality of these actions is questionable, and some cent tax increase per gallon of gas. This online event have already been deemed illegal. This event will will give an overview of how Michigan’s tax system examine the scope of these actions as well as their compares to other states and what the tax policy potential long term effects. conversation will look like in 2021. www.mackinac.org/28367 www.mackinac.org/28300

February February February 2 10 17 Flex Learning: A Customized Pandemic Policies and Why College Costs So Much Approach for Michigan the Michigan Economy: and What States Can Do Students Scholarly Research and About It The need for greater flexibility in Writing A popular theory goes something the state’s K-12 education system The state mandates put in place like this: People with college has been underscored by recent to temporarily limit the spread degrees get paid more than those experiences with pandemic of COVID-19 created widespread without, but higher education restrictions and remote learning. ramifications that are still ongoing. costs are skyrocketing, so the The Mackinac Center has created Economists and others are working government should pay for college, an education plan that would to estimate the full costs of these making it “free.” This event will help give students and families across actions. This event will discuss the us distinguish fantasy from reality Michigan more choice when it art and science of producing good, when it comes to higher education comes to education during the time original scholarship. policy. of COVID. www.mackinac.org/28414 www.mackinac.org/28411 www.mackinac.org/28416

MICHIGAN VOTES OPPORTUNITY MICHIGAN LITIGATION Want to know what your legislators Do you want to get more engaged Our public interest law firm (and others) have been voting for? with public policy in Michigan? advances individual freedom MichiganVotes.org helps keep Michigan Opportunity Michigan is right for you. and the rule of law in Michigan. politicians accountable to their constituents. OpportunityMichigan.org Mackinac.org/MCLF MichiganVotes.org IMPACT January/February 2021 5 2021: Playing the Cards We’re Dealt

To borrow a metaphor from the world of While President Biden can do Whitmer schedules the special elections poker, Team Liberty wasn’t dealt a great some damage around those areas for their replacements. The effects of set of cards in the November election. through executive orders, a future those vacancies will more likely be felt But the hand is still playable. administration could repeal them all. at the committee level, where certain And any defections in either chamber’s policies lose a champion or at least a At the national level, the headline is Democratic caucus cut off the legislative reliable vote. President Donald Trump being replaced path to the transformational threats by former Vice President Joe Biden. The The main impact of the Michigan as well as radical Cabinet or judicial Trump administration was a strong ally election, though, is the flip of the nominees, at least for the next two years. in reducing federal tax rates, removing . Liberty destructive federal regulations, Closer to home, Republicans will retain stalwart Stephen Markman, who was promoting worker freedom, and majorities in both chambers of the age-limited off the bench, will be appointing rule-of-law judges to the Michigan Legislature. Senators did not replaced by former Michigan League federal bench. stand for reelection last November, and of Conservation Voters President there was no change in the partisan Elizabeth Welch. This will be the first Before the election, polling and makeup of the House. time in many years that the court will conventional wisdom strongly have a majority of Democratic-endorsed suggested that Biden would assume the Eight of the incoming Michigan House justices. Expect the court to issue presidency accompanied by an enlarged members participated in the Mackinac activist rulings in most areas of law and Democratic majority in the U.S. House Center’s Candidate University last grant broad deference to the executive and a new Democratic majority in the June, and we are opening lines of branch, especially in upcoming cases U.S. Senate. But Democrats lost most of communication and collaboration involving emergency powers. ¬ their majority in the House and only got with them and others before they to even in the Senate. join the Legislature. So far, we have been impressed by the experience By David Guenthner With a solid federal trifecta control and perspective of the incoming of the presidency, Senate, and House, House class. David Guenthner is the senior strategist for leftists could have achieved their wildest state affairs at the Mackinac Center. dreams through legislation. Trump tax Two state senators resigned their seats cuts: repealed. Green New Deal: passed. at the end of December after winning Medicare for All: done. College debt: elections to county offices. Those seats cancelled. Fifty-state forced unionism: could remain vacant much of the year, check. Donor disclosure required: yep. depending on when Gov. Gretchen

6 January/February 2021 IMPACT IMPACT January/February 2021 7 Mackinac Center Introduces New Council of Health Care Providers Advisory Board will inform policymakers and public about sound reforms to health care policy

Public health has leaped to the top of the The council and the Center will have a issues has proved valuable time and again, list of issues voters are most concerned symbiotic affiliation. The council will and we expect the same of our new council. about following the outbreak of COVID-19. contribute to our mission and boost our Improving health care policies in Michigan And government spending on medical care influence by writing and reviewing articles is no easy task, as some powerful interests continues its long-standing rapid rise. Health and studies, giving presentations at public defend the status quo and others push for care policy will, then, remain a significant events and advising our team. In turn, we will costly changes that would make health care issue for Michigan’s patients, medical help broadcast their voice on important issues even worse. The Mackinac Center hopes practitioners and taxpayers. by arranging for them media interviews, to inject a strong voice for market-based op‑ed placements and legislative testimony. With this in mind, the Mackinac Center reforms, and our new council of health care is assembling a council of health care While the expertise they bring to the table professionals will play an important role. ¬ professionals to advise and contribute will vary, members of the council will be to our work of educating the public and united in supporting the Mackinac Center’s By Michael Van Beek policymakers about sound policy. These free-market perspective. The council will experts will help us gain expertise on health aim to promote market-based reforms to Michael Van Beek is the director of research at care issues, so that we can better understand make taxpayer spending on health care the Mackinac Center. the impact of existing policies and the more effective and to improve public possibilities of potential reforms. health. The council’s perspective will help us identify regulations that need trimming, The council will consist of medical anticompetitive measures that need practitioners, such as doctors, nurses, rescinding, programs that need reforming surgeons, dentists, pharmacists, technicians and costs that need reducing. and therapists. These professionals feel the result of policies at the ground level. Their The Center has experience working with perspective, expertise and opinions are groups such as this council. Our Board critical to improving health care policy. Their of Scholars consists of economists, policy voices are not heard enough and are often experts and business leaders, and it includes drowned out by large, organized interests, more than 30 professors at Michigan colleges, such as unions, professional associations and including Hillsdale, Northwood, U-M, CMU hospital executives. and WMU. For decades, its input on policy

IMPACT January/February 2021 7 Mackinac Center Recommends Flex Learning Plan to Reshape K-12 Education

The pandemic experience has revealed a within their district and strong supports online courses sponsored by different public great deal about the limitations of the K-12 from their home and community. But some schools across the state. New Hampshire has education system. While status quo defenders of their peers suffer from a rigid design that started to let students earn graduation credits intently focus on more funding as a solution, leaves them with unsatisfying all-or-nothing outside the conventional school system. policymakers should work toward a redesign. choices. To broaden the pathway to success, And Idaho allows high schoolers to direct the Mackinac Center proposes that Michigan When school buildings closed down in a share of state funds meant for their lawmakers adopt Flex Learning. This plan March, the first instinct of state education schooling to pay for advanced coursework would enable pupils to take a fuller range bureaucrats was to tell schools that remote and workforce training of their choice. of online courses and career programs, instruction wouldn’t count because they had Idaho’s Advanced Opportunities program directing a share of their designated formula no way to keep track of student seat-time also offers scholarship incentives to students funds to cover costs. requirements. The checklist of rules must be who graduate early and save the state money. satisfied first, they say, regardless of academic Under Flex Learning, participating Michigan Michigan should take a page from this book. results. Make no mistake, the experiment students could combine offerings from The pandemic took a great toll on student with distance learning has harmed the different providers, including hybrid and learning, but providing new levels of prospects of many Michigan youths. virtual courses, business apprenticeship flexibility could prove to be a true educational programs, and dual-enrollment credit Yet even before the COVID-induced shock, silver lining for years to come. ¬ opportunities. This would give students and public education had many woes. Too many their families a greater ability to find engaging students were falling through the cracks. quality learning, master material and advance By Ben DeGrow One-fifth of the Class of 2018 failed to earn at their own pace. a diploma on time, and roughly half of them Ben DeGrow is the director of education policy dropped out of formal schooling. One in four A small number of innovative Michigan at the Mackinac Center. graduates who went on to college needed school districts have adopted key components remedial help. of Flex Learning, allowing their students to combine their own conventional classes, Thousands of Michigan public high schoolers virtual courses and career explorations. But have no access to advanced courses that such opportunities remain outside many would help them en route to college. Detroit’s students’ reach. career and tech programs, meanwhile, are enrolling many young people in fields with Other states have paved the way for a limited job prospects. customized education approach, which gives students more options and keeps them Some students make progress just fine in the engaged on the way to graduation. Utah, for current system, based on available options example, allows students to take a full load of

8 January/February 2021 IMPACT IMPACT January/February 2021 9 2021 Might Be a Banner Year for State-Led Worker Freedom Efforts

While a new presidential administration in Florida, for example, is well-positioned to requirements) and eliminating union the nation’s capital brings serious concerns become a model state for worker freedom. opt‑out windows that let employees leave a about labor policy at the federal level, there Lawmakers there, working closely with union only at certain times of the year. are new and exciting opportunities in the allies on the ground and the Workers for Indeed, 2021 may be the biggest year for states. Many officials there are working to Opportunity team, passed legislation in worker freedom that the country has seen insulate their employees from labor union the House in 2020 to properly implement in quite some time. The Mackinac Center’s infringement on employees’ constitutional Janus. Under this measure, Florida public Workers for Opportunity initiative, which is rights, and the Mackinac Center will employees could not be presumed to consent the only multistate labor reform effort of its continue to help them find their way. to union dues without first providing that kind, should be proud of its leading role in clear consent directly to their employer, In 2018, the U.S. Supreme Court’s decision making this a possibility. ¬ annually. Before the bill could move to in Janus v. AFSCME paved new ground for the Senate, the COVID-19 pandemic public employees in the 22 states without intervened. But look for the Senate to take By Lindsay Killen right-to-work protections. In its ruling, the it up this year. court restored their constitutional rights to Lindsay Killen is the vice president for earn a living free from forced government Missouri lawmakers similarly pursued strategic outreach and communications at the unionism. Since that time, state officials legislation to protect Janus rights in 2020, Mackinac Center. across the country — including those in stalling only when the General Assembly states with right-to-work laws — have been was forced to suspend business and focus on unpacking the decision. They have been the pandemic. We expect to see leaders in exploring whether their state complies with the House and Senate return to the worker Janus and how they might expand upon freedom agenda during this new legislative these rights for public workers. session. Results from the 2020 election suggest that it has some momentum, as a The Mackinac Center’s national Workers number of new and returning lawmakers for Opportunity initiative has been at the can be expected to support it. forefront of advancing the worker freedom agenda across the country, collaborating The Workers for Opportunity initiative is with lawmakers in over 15 states in just working with lawmakers in seven other new two years to lay the groundwork for bold states in 2021 to support legislative efforts reform. This year, the prospects across to expand employee rights. These efforts the 50 states are promising. More liberty- include reforms like those in Florida and minded policymakers are occupying state Missouri. But they also include ideas such House and Senate seats, and more allies of as expanding right-to-work for private the worker freedom movement hold the employees, improving workers’ voting governors’ mansion. rights (including union recertification

IMPACT January/February 2021 9 Mackinac Center Has Bold Agenda for 2021

The 100th Michigan Legislature in and reduced Michigan’s exorbitant we protected state employees’ Janus 2019-20 was the first full legislative premiums. We substantially curtailed rights while blocking other attempts to cycle in which the Mackinac Center civil asset forfeiture. We passed a broad entrench union power. had a full-time government affairs swath of criminal justice reforms that presence in Lansing. Even with our enhance public safety, reduce costs So what do we do for an encore? state government divided by party and to taxpayers, and promote gainful The Mackinac Center’s 2021 policy disrupted by a global pandemic, we employment and family stability. We recommendations extend the protected your electronic data. We were able to deliver strong results on principled work we’ve done for more ended one major corporate welfare many of the issues you care about. than three decades while responding program and substantially reduced an Working with our legislators, coalition ineffective tourism marketing program. to new challenges and opportunities partners, and sometimes Gov. Gretchen We helped to bury a proposed 45- illuminated by our state’s response to Whitmer, we reformed auto insurance cent per gallon gasoline tax hike. And the COVID-19 pandemic.

10 January/February 2021 IMPACT IMPACT January/February 2021 11 While recently deployed vaccines families to educate their children in handed over their 141 presidential provide hope that our pandemic so-called learning pods. This kind of electors to the whims of California and nightmare may end later this year, the permissionless innovation, birthed out its lax election processes. The Electoral damage to Michiganders’ economic of necessity, represents another type of College exists so that every state and and personal well-being has been education option that should be widely every voter within each state has a say, significant and continues to compound. available. To make them more accessible, not just California and the East Coast. While much of the fight between lawmakers need to revise an array of Rather than join the National Popular Gov. Whitmer and the Legislature has existing state regulations. Further, the Vote interstate compact, Michigan revolved around her use of executive Legislature should provide tax write- legislators should clarify in our state authority, it is imperative that her offs for expenses and donations made constitution that Michigan shall award critics lay out a broad set of alternative on behalf of low-income students who its presidential electors only based on policies for how they would manage the participate in pod learning. votes cast by Michigan residents. ¬ pandemic. Here are our ideas. A number of other recommendations First, Michigan’s certificate of need and on our list are in line with those we’ve By David Guenthner nursing scope-of-practice laws, which published for years. Don’t raise taxes, artificially restrict our state’s health care borrow for roads, or give away our David Guenthner is the senior strategist for state affairs at the Mackinac Center. capacity, need reforming. These laws tax dollars through corporate welfare. posed a severe threat to public health Ensure affordable and reliable energy until Gov. Whitmer suspended them by by completing the Line 5 tunnel and executive order during the first wave of rejecting green-energy boondoggles. the pandemic. But they were reinstated Increase government transparency; before the second wave hit, even as the make the governor and Legislature governor said their suspension “saved subject to open records requirements. countless lives.” Inexplicably, neither Prune unnecessary criminal laws and Gov. Whitmer nor the Legislature acted occupational licensure requirements. to suspend or repeal them during last Two of the more significant additions December’s lame-duck session. to our portfolio for 2021 are enacting If either the governor or the Legislature police discipline reform and defending are serious about ensuring that our the Electoral College. health care system can respond flexibly Law enforcement officers have an to crises such as COVID-19, they will extremely important and difficult job, make the automatic suspension of CON and we as citizens give them extensive and scope-of-practice laws during a authority — including to use deadly public health emergency their first force when necessary — to carry it action item in 2021. Legislators should out. We should expect appropriate also expand telemedicine access so that sanctions against officers who abuse qualified, licensed health professionals that authority, but union contracts too from other states can offer remote often skew the disciplinary processes services within their scope of practice to impede those sanctions. If legislators to Michigan residents. are unwilling to remove disciplinary Second, the state must respond to the processes as a subject for collective scandalous failure of K-12 schools as bargaining, they should at least prohibit they attempted to educate Michigan several common contract provisions children in an online or hybrid format. that protect bad behavior. For too many students, insufficient Lastly, a movement has arisen to interaction with their teachers created encourage states to nullify the U.S. deep learning deficits that endanger Constitution and, through an interstate their long-term well-being. compact, replace the Electoral College The frustrating response to the with a “national popular vote” in pandemic by many school districts led which 15 states have already effectively

IMPACT January/February 2021 11 Mackinac in the Media

Budget discussions have been front and the help they need, and making it more likely center at both the state and the federal level. they will be back in court again later.” As Some states hoped the federal government quoted in MIRS, Jarrett Skorup praised the would help them with their fiscal woes, reforms to Good Moral Character provisions but a federal bailout is not the answer. As of occupational licensing rules: “A past James Hohman wrote in The Hill, “While mistake should not automatically prevent state budgets are looking better, there are people from honest work in an occupation of some real fiscal problems in state and local their choice. This is a great move by Michigan governments; they’re just not caused by the lawmakers which will help ex-offenders, job pandemic. Their trillion-dollar-plus pension creators and the public.” underfunding problems — where either by When President-elect Joe Biden pegged accident, neglect or intent, policymakers former Michigan Gov. Jennifer Granholm racked up massive debts to their employees as his secretary of energy, reporters turned and retirees — predate 2020.” Underfunded to the Mackinac Center to learn more about pensions are not a new problem. In its her impact on energy in the state during her Communications Manager editorial, The Detroit News cited the findings time as governor. Jason Hayes wrote about of a Mackinac Center study which showed the failures of the Granholm administration that Michigan’s 100 largest cities had more in an op-ed in The Hill. “Granholm … than $5.5 billion in combined pension loaded millions of dollars in tax breaks and liabilities. In addition to warning about federal government stimulus onto solar power bailouts, our fiscal policy team continued producers, hybrid-electric manufacturing and combating the myths surrounding taxpayer- an advanced battery plant. All went bankrupt funded corporate subsidies. Michael LaFaive within a few years.” He also appeared on was recently quoted in MIRS, The Daily radio shows throughout the state, including Mining Gazette and Crain’s Detroit Business Michigan’s Big Show, Frank Beckmann and on their ineffectiveness. the Guy Gordon show. In an op-ed that ran The 2019-20 Legislature’s busy lame-duck across the country in USA Today, Jarrett session produced several worthy pieces of Skorup wrote, “With [Granholm] at the helm, legislation. David Guenthner praised some you can expect the Biden administration to of the newly passed criminal justice reforms, repeat Michigan’s corporate welfare failure, including one to eliminate mandatory but on a much grander and costlier scale.” ¬ minimums. “These mandatory minimums,” he told the Detroit Free Press, “can prevent those with mental illnesses and those accused of incredibly minor violations from getting

12 January/February 2021 IMPACT IMPACT January/February 2021 13 Make a New Year’s Resolution to Plan for Possible Taxmageddon

There is nothing like a New Year to make you take Our 2021 resolutions, furthermore, may be an ideal stock of the year that has passed. One thing I learned time to face the Taxmageddon that might be coming in 2020 is that there will always be a need to build from the federal government. The Tax Cuts and Jobs public and philanthropic support for the principles the Act of 2017 dramatically increased the unified federal Mackinac Center stands for. estate and gift tax exemption from $5.49 million in 2017 to $11.4 million and added inflation adjustments. Each year, I write down my New Year’s resolutions. By But the exemption is scheduled to revert to $6 million the time you read this, I will have forgotten most of in 2026. When adjusted for inflation, that’s lower than them. Just last week, I wrote in my journal, “Dear New it was before the 2017 tax cut. Year’s Resolutions — It was fun while it lasted.” During the presidential campaign, Joe Biden proposed According to Forbes, studies have shown that less than reducing the estate-tax exemption as early as 2021. 25% of people stay committed to their resolutions after Other changes in his platform included raising certain just 30 days; only 8% accomplish them! At least I know tax rates for households with an income of $400,000 or I am not alone. more and scraping the step-up rule for inheritances. This is the rule that allows heirs to inherit an asset at If we have already abandoned the first draft of our 2021 its current market value rather than the value (“basis”) resolutions, let us look for ones we can actually keep. at which it was purchased. Thanks to the rule, the One of those may be to review and update our estate person who sells an inherited asset immediately pays plans. Like the more typical resolution to lose weight, a no capital gains taxes on it. Doing away with or even resolution to create an estate plan can sound daunting modifying the rule, however, would decrease the value at first. But estate planning is one of the best goals we of the inheritance and generate more revenue for can establish, for it involves steps we can realistically Uncle Sam. expect to take and sustain. In the wake of 2020, it may This is the estate Taxmageddon threat, and anyone be more important than ever. who has a healthy estate should be aware of it. One way The shift to working from home has enabled some to recognize the threat and disarm it is to make large people to move to a new state, which can affect tax-free gifts this year to whittle down an estate. Doing existing estate plans. A dozen states and the District so will likely counteract the unfavorable policy changes of Columbia still impose their own estate taxes, and mentioned above. six others impose an inheritance tax. The federal government uses a limit that exempts many estates from its estate tax, but some states have a much lower By Steven limit for their own tax. For example, Oregon and Virgadamo Massachusetts exempt just $1 million; larger estates may be taxed at up to 16%. Given last year’s slowdown Steven Virgadamo is the senior fellow in tax collections, some states may delay already for advocacy and scheduled increases to their exemptions or even strategic counsel at the ratchet them down. Mackinac Center.

IMPACT January/February 2021 13 14 January/February 2021 IMPACT IMPACT January/February 2021 15 MEET THE STAFF How’d a Girl Like You End Up in a Place Like This? A profile of Lindsay Boyd Killen, Mackinac Center vice president for strategic outreach

Though Lindsay Killen hails from the and back to Michigan. Now she serves as movement. “It has long set a True North Smoky Mountains of East Tennessee, the Mackinac Center’s vice president of path for principled, successful liberty she ended up working for a think tank in strategic outreach and communications. organizations, and I wanted to be a part Michigan, due in part to her family history. of it.” One particularly significant stop on her “My earliest influence was my great- journey was an internship at the Freedom As vice president for strategic outreach grandfather, George Koether,” Killen Alliance, a national defense think tank and communications, Killen sees her role said. “He was an economist and one headed by Lt. Col. Oliver North. as empowering her team members to be of the earliest proponents of Austrian successful and ensuring that the Center “One area of my life that evolved economics in the .” helps shape freedom-oriented policies in significantly over time, both personally Michigan and beyond. Koether was a lion in the free-market and professionally, is my reliance on my world, working with the likes of Ludwig Christian faith,” Killen said. “My great- In her free time, the workout junkie Von Mises and F.A. Hayek. He had strong grandfather resisted religion and any and self-described Peloton groupie Michigan roots, growing up in Detroit influence it may have in public policy. participates in “free-market riders,” an and attending Albion College. Koether But I witnessed Lt. Col. North holding online community that allows her to later worked for the Foundation for monthly prayer meetings in his office network with other freedom-movement Economic Education, which now gives an — something that would stick with folks working up a sweat. annual award in his honor. me through college and as a young “My husband and I also enjoy running, professional in D.C. Unlike my great- He fed Killen’s interest in the freedom hiking, and boating, though the term ‘free grandfather, I began to internalize how movement, sending her cassette tapes time’ feels increasingly elusive!” critical my faith is to why I continue to of his musings on free trade; his debates, be motivated to change peoples’ lives for It’s no wonder, as Killen and her husband conducted in smoke-filled rooms, with the better.” welcomed their first child — a daughter, Ayn Rand; and other topics. When Viola — in 2019 and will welcome their Killen considered higher education, he In 2017, she married her husband, second child in March. ¬ suggested the Gerald R. Ford Institute for Jeff, at his family’s home in Glen Lake, Leadership in Public Policy and Service at Michigan. As they contemplated life Albion College. together, the Mackinac Center became an obvious destination. Following his suggestion and example, she enrolled there. Like him, she then set “I’ve always been drawn to the Mackinac off on an eclectic career path, which has Center,” Killen said. One reason was taken her from Michigan to Washington, her family ties to the state. But another, D.C.; California; Nashville, Tennessee; she said, is its role in the freedom

IMPACT January/February 2021 15 140 West Main Street, P.O. Box 568 Midland, Michigan 48640

INTRODUCING

BRINGING MACKINAC IDEAS TO VIDEO SCREENS

While all of the Mackinac Center’s videos are Now, however, “The Scoop” is here to stay. Viewers educational, “The Scoop,” a new live series on can expect a new video each month. Each episode, Facebook, introduces a more casual format. released simultaneously on the Mackinac Center’s Facebook page and YouTube channel, discusses an The first of these new videos gave viewers some important policy issue with at least two experts. insights into the Mackinac Center’s victory at the The series will continue to provide viewers the same Michigan Supreme Court, where we prevailed over quality information and discussions they have come Gov. Gretchen Whitmer’s unilateral extension of her to expect from the Mackinac Center, but in a more state-of-emergency powers. The video features three accessible format. Mackinac Center staffers: Director of Communications and Marketing Jarrett Skorup moderated a discussion Do you have an idea for a topic you would like to between Director of Research Michael Van Beek and see featured in this video series? Contact Taylor at Vice President of Legal Affairs Patrick Wright. They [email protected] with any suggestions. ¬ talked about the court decision and answered several questions about its potential implications for the state.

This new three-person format allows for a more casual and natural conversation that offers an easier-to- understand explanation of issues in public policy. This can be extremely helpful in breaking down difficult topics for a general social media platform, and it gives the Center another way to connect with our audience.

The series has received positive feedback from the start, but it was temporarily halted in December by the state’s stay-at-home lockdown.