New faces, same issues

by Larry Meyer
MRA Chairman and CEO

There’s a new administration in town, a new legislature, too—but the same old major retail issues are back again: item pricing reform and tax fairness for Main Street.

Governor Granholm, borrowing a term from business, says she wants to brand Michigan as The Technology State. Makes sense to us, and we’re all for it.

But we can’t be the nation’s technology leader as long as we cling to an outdated item pricing law that prohibits our tens of thousands of retail stores from employing new technology that could save money for consumers and retailers alike while ensuring that the intent of the law—pricing accuracy—is both encouraged and achieved.

Reform of the horse-and-buggy law along the lines proposed late last year makes great sense. Quite simply, the legislation would encourage retailers to get the scanned price right, not just most of the time but virtually all of the time.

We’re not interested in lessening consumer information or weakening consumer protection. In fact, the legislation would increase both. We also know that putting retail employees into jobs that provide customer service or that work with new technology will do a lot more for them—and all of us collectively—than making them spend their days putting price stickers on every item over and over again.

Michigan currently stands out as the most backward state in the nation on this issue. If we really want to be the technology state, it’s time we let our stores join the 21st century.

Fairness for Main Street retailers is also critical to Michigan’s future. Nationally, we’re making solid strides in the decades-long fight to require “remote sellers” to collect taxes on goods sold to in-state residents.

The current inequity costs Main Street in lost retail sales, investment and jobs. It also costs the state, especially local schools, hundreds of millions of dollars in lost revenues every year. Its impact is particularly keen during this time of massive state budget deficits.

We expect the Granholm administration will be supportive. But at the moment, the issue is taking a back seat to the current budget fights.

Endless, partisan arguments over budget policies have their place but tax fairness—and its ability to plug some of the major budget holes—should be the number one priority for both sides.

On a more personal note, having worked with former Lieutenant Governor and Congresswoman Martha Griffiths and being the father of two daughters, I admire and appreciate all she did during her outstanding career. She was a pioneer in the fight for women’s rights and dedicated her life to public service. We all owe her a debt of gratitude.