Tax cuts top Sen. Schuette's list of priorities

State Senator Bill Schuette's boyish grin and youthful energy belie his impressive resume of political accomplishments.

At 48, Schuette has been a lawyer, three-term United States congressman, U.S. Senate candidate, director of the Michigan Department of Agriculture and now state senator from Midland. He held his first office - precinct delegate to the state Republican convention - at age 18.

Despite his lengthy list of achievements, it's easy for him to pick out the most important event in his 30-year career: his marriage in 1991.

Though he and his wife, Cynthia, had known each other since childhood, they didn't begin dating until the midst of Schuette's tough and hectic U.S. Senate campaign in 1990.

"My wife and I went to the same bus stop in grade school and junior high school, but she ignored me for 30 years," he joked.

Though Schuette was unsuccessful in his bid to unseat Democratic U.S. Senator Carl Levin, he was lucky in love: he and Cynthia became engaged just days after the election and were married the following year.

Now entering his final year in the Michigan Senate, Schuette and his fellow senators will face tough challenges as the legislature grapples with the $1.4-billion budget shortfall predicted for the 2003 fiscal year.

Though there are "no quick fixes" to the state's budgetary dilemmas, Schuette says strengthening the economy is the top priority to preserve state revenue and help retailers and other businesses.

"The biggest issues for retailers this year are jobs and the growth of sales in their stores," he said. "We need to have a stronger economy in Michigan."

Schuette believes halting scheduled tax cuts, as some lawmakers have proposed, would be a big mistake in the current economic climate.

"Thanks to the governor and his leadership, we're on track for planned reductions in the personal income tax and the Single Business Tax," he said. "I think we need to keep those in place and on track, because they put money back in people's pockets."

So strong is his commitment to preserving the cuts that Schuette favors removing the automatic freeze in the Single Business Tax rollback. Under current law, the 0.1-percentage-point reduction will be suspended whenever the state's Budget Stabilization Fund falls below $250 million. That provision is expected to be triggered in next year's budget.

Schuette says stopping the cuts sends the wrong message to business. Removing the automatic trigger so the cuts can stay in effect would emphasize state government's commitment to a solid business climate.

"That sends a very strong message to businesses across the state that we want you to keep hiring people and keep people on the job," he said.

Schuette looks to the example set when the state faced a similar fiscal crisis during the recession of 1991 but was able to cut taxes and reduce spending.

"I'm convinced that the legislature has the ability to do the same thing now, 10 years later," he said.

He encouraged the retail community to stand firm in its support of the tax rollbacks.

"The retailers ought to be one of the voices out there saying we ought to keep the tax cuts on track," he said.

Maintaining the tax cuts means lawmakers will have to make painful, potentially unpopular cuts to state spending during an election year that has many of them jockeying for political position. But Schuette says voters will respect legislators who display leadership and make decisions "for the long haul."

"In 2002 people will look at elected officials and determine if they have the character to take the Bush or Giuliani test, which are my words for how a person responds in a crisis," he said.

Schuette supported the business community on the telemarketing package passed by the Senate shortly before the holiday break. As originally proposed, the bills hindered in-state businesses from contacting customers by telephone but failed to address the real problem of large national companies conducting telephone solicitation.

"The first bill to come up penalized Michigan businesses that have a history of honest dealings with customers and opened the door to out-of-state companies to continue the harassment of consumers," he said. "You can pass any law you want in the state of Michigan and it won't stop these out-of-state companies from preying on consumers and seniors."

As if to drive home the point, Schuette said, the evening before the package came up for consideration in the Senate, he received a telemarketing call at home during dinner from a national bank pitching a credit card offer.

In the end, the bills were changed considerably to require certain disclosures by telemarketers without unnecessarily restricting Michigan businesses.

Schuette is sponsoring a bill important to jewelry retailers because it will help regulate pawn shops, which sometimes resell stolen jewelry. Senate Bill 116 would allow all local governmental units to enforce licensing requirements for pawnbrokers. Currently, some municipalities cannot require pawnbrokers to be licensed.

One of 27 state senators who will be forced from office by term limits at the end of this year, Schuette is considering opportunities for the future, including positions in the private sector. He has already considered and decided against running for attorney general.

Meanwhile, he's enjoying being a dad to his children, Heidi, 8, and Billy, 6. This winter he and Cynthia are working on teaching their children to ski, a lifelong pastime of both parents.

Each fall Schuette and his wife, along with Gov. John and Michelle Engler, raise funds and food contributions for Michigan food banks through Michigan Harvest Gathering, a program Schuette helped create - at Cynthia's suggestion - during his tenure as director of agriculture. Michigan Harvest Gathering has raised more than $3 million and 4.1 million pounds of food since 1991.

This article was written by Michigan Retailer staff writer Rachel Whitaker.

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