Neither of these new laws would stop piracy, which Absolute Michigan is opposed to. Both, however, would put control of online content in the hands of large entertainment corporations and the government, placing a giant burden on web media outlets like Wikipedia, WordPress, YouTube ... and even little old Absolute Michigan.

With our Absolute Michigan, Michigan in Pictures and Leelanau.com websites all down yesterday, there was some time to think about the issue, and we'd like to share one thought: We live in a world very different from the early 1700s when Parliament enacted the Statute of Anne to address the concerns of English booksellers and printers (you can look it up ... for now, on Wikipedia).

We are encouraged at every turn and by every consumer device to sing along to commercials, dance to the latest music and in general, swim in a sea of ever-present media. You can debate the pros and cons of doing that but it seems that expecting our candid videos, blogged observations or Facebooked^TM thoughts won't incorporate background music or samples, brand names is flat-out silly. We need intelligent and well thought out laws that recognize the modern world, and SOPA and PIPA definitely aren't either of those things.

Click here to watch a short video or read more about this issue and please take a moment to contact your elected officials through the links we provide!

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by Michael Lesich

The Red Scorpion Tower by jacalynsnana

Michigan is transitioning from its 20th Century industrial roots to a global, interconnected, knowledge- based economy. Decisions about the future of our state’s economic direction are being made in the boardrooms of private companies and the halls of our state capitol. The most important innovation of my lifetime, the Internet, relies increasingly on a solid broadband infrastructure (land-based and mobile), to carry exponentially increasing traffic. Robust and universal access to the Internet is vital to the companies and residents of Michigan and the United States. However, we are still a long way from that critical goal.

As an owner of a small IT company, I know firsthand the benefits that come from readily available broadband access. We embrace telecommuting, remote access, and online education. We have the ability to hire the best person for the job, regardless of their location. Today’s knowledge workers, and their employers, benefit from telecommuting arrangements that reduce traffic, increase productivity, and enhance the quality of the products and services they provide.

In a recent USA TODAY Op-ed Julius Genachowski, Chairman of the Federal Communications Commission, correctly identified how universal broadband can stimulate job creation and economic growth. He focused on the ability of businesses to hire work-from-home employees, using the example of at-home call centers. "Twenty percent of call center jobs in America today are at-home jobs, powered by broadband," he wrote. "The ability to work from home provides new employment options for returning veterans, people with disabilities, and parents who need flexible work schedules."

Jobs4America, a coalition of companies calling for legislation to improve job creation in the U.S., has announced that 100,000 new call center jobs will be created in the U.S. over the next two years, including "300 new jobs in Holland, Michigan." These jobs and many like them would not be possible if not for broadband Internet access. Citing a study by Novo 1, Chairman Genachowski explained that "returning a call center to the U.S. from overseas can save companies about 15%." That savings means companies have more revenue to invest in expanding business and hiring new staff.

Broadband infrastructure efforts over the past 20 years have led to entire new industries and advancements. However, the growth and availability of broadband access has been largely focused on areas with a high population density. Rural areas and remote destinations were initially cost prohibitive. Advances in land-based and wireless mobile broadband technology have improved performance and lowered the cost to provide these services to a wide area. But we are a long way from universal access to all Americans, and this must quickly change in order to be competitive in a global marketplace.

Broadband increases local job growth (from 10 Ways Broadband Helps Rural Communities)

According to PEW Research, 35% of adults in the US use smartphones, and do much of their internet access on these devices. Increasingly, these users now expect access to the internet everywhere they go. When it is not there, many will not return. When it is not there, companies will not expand to those areas.

When it comes to education for students of all ages, internet access is increasingly at the core of the curriculum. Many students have better access to the internet and technology at home than they do at school. Providing Internet access at all schools across this country should be a priority for every educator and legislature. A student population accessing online courses, reference materials from around the world, and participating in collaborative endeavors with students across the globe represent the future of education, far beyond the walls of libraries of schools past.

Linda Teeter of the Michigan Action Center succinctly lays out the benefits of Bridging the Digital Divide in Michigan. "If every household, school, and community in Michigan had high-speed wireless broadband we would be able to boost productivity, rapidly improve communication speeds, and provide our children with the type of technology and education they need to succeed in an ever-evolving job market." She also includes several recent infographics from the Internet Innovation Alliance that "show how mobile broadband can benefit many aspects of rural communities as well as health IT" and can spur job creation.

With reliable high-speed Internet, Michigan businesses anywhere will be able to compete worldwide. Without reliable and universal high-speed internet, we will be competing with other states and even countries that have made the decision to put knowledge and information into the hands of their citizens. In these troubling economic times, we cannot afford to handicap our local businesses by failing to expand this critical 21st Century Infrastructure.

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Speed by IreJustin

Applications are now open for the 2011 Accelerate Michigan Innovation Competition. The Accelerate Michigan Innovation Competition will award more than $1 million in cash winnings, plus in-kind awards of services, staffing and software to top entrepreneurial businesses and also includes a competition for college students with an idea for an innovative business.

To qualify for the Accelerate Michigan Innovation Competition, businesses must make a commitment to locate and grow in Michigan. These companies must also be at the commercial stage of business development, past proof of concept. It's open to businesses who operate in technology-driven sectors including alternative energy, IT, advanced manufacturing, life science, medical devices and advanced transportation.

Any undergraduate or graduate student who is enrolled in at least two classes in a Michigan public or private university or college for the fall 2011 semester is eligible for the Accelerate Michigan Innovation Competition, and student teams may also submit.

Get your applications and much more information at www.acceleratemichigan.org and check them out on Facebook. Check out last year's winners including $500,000 winner Armune BioScence.

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Painting A Picture Of Optimism by DetroitDerek Photography

Later this week (April 27-29) the 3rd annual  Future Midwest Conference kicks off in Detroit. It's the largest digital business conference in the Midwest and  seeks to accelerate business and cultural transformation by uniting community passions with emerging technologies. In 2011, they've selected Eastern Market in Detroit as the conference venue. In this interview, conference co-founder Adrian Pittman explains that:

FutureMidwest is a digital business conference that focuses on the impact of technology in five areas:

• Integrated marketing: How to integrate digital platforms into a well-rounded marketing mix
• User experience: How to create an engaging experience across a variety of digital media
• Mobile: How it's impacting information exchange and user access and how to utilize it
• Business Intelligence/Analytics: How to define metrics that matter most and apply them
• Regional growth: How the Midwest is participating in the information age

The conference features 2 full days of presentations, panels and exhibitions about technology, social media and how all of this ties into creating a new future for the Midwest. The 2011 conference debuts  Funded by Night, one-day competition to fund tech startups where 25 companies will create to will compete to win a $100,000 convertible note from two local venture capital firms Detroit Venture Partners and Ludlow Ventures.

Any video with a space cow in it has to be good, and the 2010 conference video is no exception!

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Connect Michigan has announced that 95.41% of Michigan households have access to the minimum threshold for broadband at 768Kbps downstream. Just under 175 thousand Michigan households remain unserved other than by mobile wireless or satellite service. The image to the right shows the availability of fixed wireless, one of many options including cable, DSL, fiber & mobile service that you can explore through the Interactive Michigan Broadband Map. They plan to also offer data on internet & broadband adoption as well as computer ownership.

Connect Michigan's news release states that the maps were created through a partnership between the Michigan Public Service Commission and the national nonprofit Connected Nation. The American Recovery and Reinvestment Act requires the Commerce Department to create a searchable national broadband map and make it publicly available by Feb. 17, 2011. In addition to offering a map of current connectivity:

Connected Nation's GIS team will continuously refine the maps as more data is gathered - relying upon citizen feedback as part of the validation process. Residents, businesses, and any interested party with knowledge of the state broadband landscape are asked to go to Connect Michigan's website to provide input that will be used to verify and ensure the highest level of accuracy for the broadband maps.

On Connectmi.org, those who do not currently have broadband access can add their name and address to a secure database of households that would like to subscribe if given the opportunity. The collected information supports the creation of the broadband inventory map that will assist in expanding broadband delivery to residents across the state.

There are also detailed county maps showing broadband inventory and the density of households unserved by a broadband provider along with a a statewide map displaying rural and non-rural areas eligible for stimulus funding, a great tool for applicants submitting for broadband stimulus grants and loans.

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.cadillac buildings-detroit. by tEdGuY49 ®

Note: they have a special "no frills" registration for $100 - amazing deal!

Detroit will host the Creative Cities Summit 2.0 (CCS2) on October 12-15, 2008 at the Renaissance Center. CCS2 is an interdisciplinary conference on the economic, social, cultural and environmental aspects of what makes great cities.

I could talk on and on about the eye-popping agenda they have created and amazing speakers who will attend - headlined by Dr. Richard Florida, author of Rise of the Creative Class, John Howkins, author of The Creative Economy, and Charles Landry, author of The Creative City. I could muse about how all the attendees from all over the world might influence the conversation about the re-invention of Detroit and Michigan. I could say that if you can't make it during the week, you might want to check out the Unconference on Sunday @ MOCAD.

However, I think it'll be enough to ask you to watch the videos in our Creative Cities 2.0 playlist below (including a little Detroit easter egg) and tell you to register now! See you there!

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Hands at Work by detroitsky

Tim Pulice's Pulice Report blog has announced the Arresting Site of the Month for May 2008. The inaugural selection is Michigan Innovators and Tim writes:

I first ran across this terrific online destination last summer, which dovetails perfectly with the spirit of this blog, wherein I look to spotlight Michiganders who display creative zeal. Bud Gibson is doing just that. Along with Diana Wong – who now is in an advisory role – Gibson founded the site in June of 2007, and has compiled an impressive archive of video interviews with business and community leaders across the state, including MicroMax's Rachel McCormack, the Ann Arbor Film Festival's Donald Harrison, Metro Parent's Alyssa Martina, Blight Busters' John George, and many others...

Read on and learn how to submit your favorite Michigan web site or blog.

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Capitol, Landing MI by Irina Vasiliu

Below you'll find a news release from Governor Granholm regarding an agreement to add a 21.9% surcharge to the new Michigan Business Tax to replace the 6% Michigan Service Tax.

The Detroit Free Press and Detroit News have details on the agreement as well.

Granholm, State Lawmakers Agree to Replace Service TaxReplacement Helps State's Fiscal Stability

Protects citizens from massive cuts to public safety, health care, education

Governor Jennifer M. Granholm, Lt. Governor John D. Cherry, Jr., Senate Majority Leader Michael D. Bishop, House Speaker Andy Dillon, and Senate Democratic Leader Mark Schauer along with legislative members have agreed to replace the service tax that went into effect at 12:01 a.m. today. Under the agreement, revenue generated by a service tax will be fully replaced by a surcharge on the Michigan Business Tax (MBT).

The State Senate is expected to complete work on the tax package in the early hours of this morning and the State House is expected to approve it later today. Under the agreement businesses will be granted legal protection if they fail to collect the service tax until effective date of the new law.

"This agreement protects health care, public safety and education while replacing revenue from the service tax," said Governor Granholm. "I applaud the members of the business community and the legislators who worked with us to craft this fair and responsible compromise."

Senator Bishop (R-Rochester) offered the following statement: "I appreciate the spirit of compromise to repeal a tax that would have devastated Michigan business. It is only through continued good faith negotiations, compromise and dialog that we can set Michigan on a track for renewed economic prosperity."

"These negotiations were very difficult due to our challenging economic climate, but I am confident that this agreement is a fair compromise that will allow the state to provide the services necessary to support our businesses and attract new businesses to a state that has a tremendous quality of life," said Speaker Dillon (D-Redford Twp.). "I commend Michigan's business community for their willingness to step up and work towards a solution."

"By working with the business community and each other, we reached a compromise that gets rid of the service tax and keeps our promises to fund schools, public safety, and health care," said Senator Schauer (D-Battle Creek). "This is the type of reasonable approach that will protect our priorities and position us for economic growth."

Under the agreement, the replacement for the service tax will phase out under certain economic conditions.

The MBT, which takes effect January 1, provides tax cuts for more than 60 percent of Michigan businesses and provides tax cuts to both small businesses and Michigan's major manufacturers, while encouraging job creation in Michigan.

The MBT helps stimulate Michigan's economy by relying more on profit, providing tax credits to companies that locate or create new jobs in Michigan and tax credits for entrepreneurial and R&D activities. In addition, a significant cut in the personal property tax will help the state's largest employers and commercial businesses.

"With this agreement in place, we can continue working on the economic plan that will help grow our economy and create jobs," said Lt. Governor Cherry.

# # #

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Carousel by jnhkrawczyk

"We've got a shift starting in 36 hours that we've got to charge 6% more on ... and I don't know how to do it."
-John Evans, president of Evans Distribution

Welcome to Michigan, where we somehow seem to be stuck in the Reality TV version of Groundhog Day: Your Government inAction. With just hours remaining before a confusing, unexplained and really random 6% Service Tax goes into effect, everyone who might have to pay the tax is watching the clock and wondering what Lansing will do. Read on for much more...

The Freep's Susan Tompor writes that the new 6% service tax is like one of those bad snowstorms that everybody hoped would skip town. Even the forecasters warned that this thing couldn't last long. This oddly crafted tax on services -- 6% on nails but not hair; 6% on ski lift tickets but not golf -- is so dopey that most expected it ultimately had to be repealed.

Over on Michigan Liberal the editor of a major Michigan web site spars with a long-dead Michigan governor over the much-hatedness of the Service Tax.

An article on the Service Tax Impasse the Detroit News looks at business owners preparing for the tax and also at the state of diplomacy in Lansing:

On Detroit talk radio, House Speaker Andy Dillon, D-Redford Township, and Senate Majority Leader Mike Bishop, R-Rochester, pointed fingers at each other for the negotiations breakdown Wednesday over the service tax. The House passed its own plan and then adjourned until Tuesday.

Bishop called "garbage" a House-passed bill that the Senate rejected Wednesday night and chided: "We don't want to let the facts get in the way of the speaker."

Dillon shot back that the so-called "garbage" is backed by a large share of the business community.

Meanwhile, over at the Michigan Treasury, they have posted a disorganized jumble of information about the tax at the top of their page that includes an explanation of services taxed.

Find much more about this issue at 6% of x? Untangling Michigan's Service Tax on Absolute Michigan.

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Grand Traverse Resort by danperry.com

Hey there, if you happen to be in the Traverse City area tomorrow (Tuesday, Nov 6) Absolute Michigan will be in the "Tech City" area for the Traverse City Chamber of Commerce Business & Technology Expo from 9 - 5 at the Grand Traverse Resort.

We're be giving away a $500 Absolute Michigan sponsorship, so drop by, say hello and enter to win!

(and if for some reason our posts tomorrow are late, you'll know why!!)

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Half Staff by Apocaplops

UPDATE Oct 25: Carol of ArborLaw.com writes:

I actually have the entire list of services descriptions covered by the law, on my blog at Arborlaw.com. When the law came out, I cross-referenced the NAICS codes (which are incorporated into the new law specifically by reference) with the section numbers from the bill and the expected new numbers for sections in Michigan Compiled Laws. If you want to see this to determine whether your business services are covered, go to http://arborlaw.com/blog/services-tax. (it's a big list!)

Political analyst George Weeks writes that in decades of following how Lansing deals with financial crisis, I have never seen enactment of such a bizarre, crazy quilt, irrational, inexplicable, unfair and — most of all, confusing to taxpayers — tax.

Crain's Detroit Business goes further, calling this The best tax plan lobbyists can buy. Law and accounting services are not taxed, but the broad category of management advice, strategic planning and financial planning and budgeting will be taxed. Hmmm. So a company buying consulting services to help it keep its doors open is making a “discretionary” purchase?

Like many in Michigan, we're wondering which of the services we provide like online publications (probably not), internet consulting (probably so) or graphic design & marketing (who knows??!!) would be subject to the service tax.

Assuming that movements to repeal or change the tax fail, mLive's blog gives some idea of what services might be subject to the tax come December 2007. The nebulous "consulting services" is made a whole lot clearer when you click over to see businesses classified under 5416 Management, Scientific, and Technical Consulting Services. It's surprising to find that in addition the list includes items that are absolutely essential to the development of new businesses in Michigan like site selection, start-up consulting, marketing, and a host of science and technical services.

We invite you to add your thoughts, comments and suggestions for making some sense out of what looks like a fiscal nightmare for Michigan.

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Moon Patrol by powerbooktrance

Each post at Michigan Innovators is a video podcast interview with innovators who can or have had an impact on Michigan's economy. Two professors at the College of Business at Eastern Michigan University, Diana Wong and Bud Gibson, started the site with hopes that it would become a "highly visible repository of stories that showcase the modern, innovate spirit lurking in the Michigan economy" and also to provide material for their classes.

Their features look at the entrepreneurs and companies working in cutting edge technology such as Aaron Crumm's Adaptive Materials (making fuel cells that provide a 10x improvement over battery power, "technology concierge" Bruce McCully of Dynamic Edge, and Linda Girard, who explains how to Find & Convert Web Customers with her company Pure Visibility.

In addition to searches by industry (web communications to medical research) and by people and place, the blog also allows allows searching by themes like Defining New Markets or Technology & Culture, where you can delve into issues the technological and cultural divide between the US & China.

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An appeal to reason by Apocaplops

StateGate seems like it might be nearing its conclusion with an 13th hour deal reached at 4 AM when legislators were apparently too tired to fight anymore. The LSJ reports:

"This budget agreement is the right solution for Michigan," Gov. Jennifer Granholm said in a news release after the vote. "We prevented massive cuts to public education, health care and public safety while also making extensive government reforms and passing new revenue. With the state back on solid financial footing, we can turn our focus to the critical task of jumpstarting our economy and creating new jobs."

Leaving aside the question (for now) of how much harder it will be to create jobs with a reputation as a state that is financially unstable, let's take a look at what was added to an income tax hike - the "sales tax expansion", a 6% tax on services. The Detroit News lists some of the services that might be taxed in New levy to tax 23 services.

The list appears to make little sense, with ski resorts subject to the tax but not golf course, janitorial service providers but not plumbers, tanning but not haircuts and financial & business consulting but not legal and accounting services. What do you bet that TV ads won't be subject ... and also that we'll be hearing a lot more like this from every industry affected?

"Any service tax should be across the board on all services and not single out specific areas of the economy," Stephen Kircher, president of Boyne USA Resorts' eastern operations, said in a statement.

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Summer Night in Old Town by sabatoa

The Model D empire continues its inexorable march to talk about what's going right in Michigan cities with Lansing Area Capital Gains. The first issue includes a feature by managing editor Brad Garmon on the resurgence of Michigan's Capital City that begins:

It doesn't take an urban planner or a census taker to tell you that Lansing has turned some subtle but significant corner on its transformative journey to thriving cityhood. All it takes is a Thursday visit to the corner of Michigan Avenue and Larch Street on a hot summer night when the Lansing Lugnuts are in town...

As with other Model D productions, they blend well written articles with excellent photography and neighborhood profiles (Old Town is their first feature) to deliver a two-fisted uppercut to the jaw to the Michigan's moaning mainstream media.

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Sync by pinksage

Paddock Talk (a NASCAR racing site) has a transcript of the remarks of Ford President of the Americas Mark Fields at the Chicago Auto Show. He talks about "simplexity" - the state that exists when something is both simple and complex at the same time - and how it relates to the business of designing and selling cars.

While the payoff of Fields' speech is the fairly mundane news that the Ford Five Hundred will become the Taurus (and Freestyle the Taurus X and Montego, the Sable), I found the deeper implications about the business of making and marketing cars fascinating. When you think about the massive investment a car represents, the idea that it might become a digital/entertainment hub not so silly when you consider that it may be the most significant piece of "real" property an under-30 person owns.

I was sorely tempted to use the photo Ford And Microsoft Birth N'Sync: The End Of The World Is Nigh At Hand from Jalopnik. Although I had never really heard of the concept, apparently simplexity is fairly well established.

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The current version of Introduce Your Michigan Business or Organization is right there.

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Country Schoolhouse by nomm de photo

The Detroit News reports that some Democrats, Republicans and public policy experts are saying Michigan needs to take a look at extending the sales tax to cover more services and (perhaps) lowering the sales tax overall by a penny (6 ¢ to 5 ¢) to help offset a projected half billion dollar budget deficit. While a tax on all services would generate close to $9 billion, business-to-business services (engineering, legal services, accounting) would likely be exempt due to the adverse impact that could have on economic development. Likewise, medical services would probably be off limits as well reducing the overall revenue to just under $3 billion.

Michigan taxes 26 of 168 services (ranking 39th in the US) and increasing taxes on services is opposed by most business groups including the Michigan Chamber of Commerce who say it's a "very bad idea" and that a service tax could lead to reduced competitiveness with neighboring states. Thomas Clay of the Citizens Research Council of Michigan says:

Our tax structure is archaic, obsolete. All that economic activity in the service area is not connected to the tax system. If you had a tax on personal services, you could reduce the rate and have sales tax revenue that would grow in the future.

Read Michigan may tax services in the Detroit News and tell us what you think about such a measure in the comments.

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First National Bank Building by Allan M

Today's Freep has a nice feature on Ann Arbor's exploding high-tech job scene that says Google is not the only company planning to bring jobs to the city and Washtenaw County. Google, Toyota, Hyundai and others have committed to creating 2,500 jobs in the region over the next five years. That doesn't include a couple dozen start-ups that expect to add more jobs.

The secret? "You really have to be aggressive in selling the assets of your region," said Michael Finney, CEO of Ann Arbor SPARK. SPARK was launched by university, business and civic leaders to attract so-called knowledge-based sectors, such as alternative energy and biotechnology. (also check out the Ann Arbor SPARK blog for some great links to entrepreneur resources in the region!)

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In his accompanying essay, Jack writes:

...Most of all, the economist says, "we need a new set of attitudes -- creative, highly skilled, flexible and entrepreneurial." The situation is far from hopeless. We have a vibrant higher-tech manufacturing sector. We have an industrial work force, much of which is capable of being retrained and retolled.

Professor Ballard feels strongly that, "If we can make the transition to a new mindset, we really can achieve a vibrant economic future for Michigan." But if that is to happen, it’s clear that we do need to think outside the box. Charles Ballard’s eminently sensible suggestions violate the dogmas of both our fossilized political parties.

Democrats are not going to like some of his suggestions about public employee pensions and health benefits. Republicans will be shocked by his suggestions about taxes. But it all makes sense.

Click for more on Michigan's Economic Future by Charles Ballard and published by MSU Press.

Also see Spartan Podcast's interview with Charles Ballard.

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