The answer is, both. But while people tend to be more aware of the tax problem we face in this state, few know that regulatory over-reach by government can be just as much of a deterrent to business investment and growth as onerous tax policy.
Now, this might come as a shock to you but in terms of licensing requirements Michigan comes in 6th as the most regulated, most licensed state, by occupation in the country. California is #1 at 177 licenses, Missouri is 50th at 41. Michigan requires licenses for 116 different occupations. Does this make Michigan safer? Do we really need licenses for athletic trainer, cosmetologist, dietitian, hearing aid dispenser and Reptile catcher? Yes, these all require a license in Michigan.
You can read more about this here: http://www.reason.org/ps361.pdf