LANSING – To quicken the pace for turning Michigan's economy around, the House on Wednesday strengthened its comprehensive business tax and incentive package that rewards investment and protects Michigan-based companies, and sent the package back to the Senate.
"This enhanced Michigan Business Tax is a comprehensive plan that will jumpstart our state's economy," said State Representative Richard Hammel (D-Mt. Morris Township). "Our plan rewards businesses for investing here in Michigan, rather than outsourcing jobs elsewhere. We are making Michigan a magnet for 21st century jobs, which will give our economy the boost it needs and put Michigan on the road to recovery."
The House first unveiled the plan in April – putting out the only plan of its kind to address both the Personal Property Tax and the Single Business Tax (SBT) in such a far-reaching manner. The Michigan Business Tax (MBT) would allow 75 percent of businesses in Michigan to pay less in taxes, while protecting funding for education, health care and the 21st Century Jobs Fund.
The Single Business Tax (SBT), widely regarded as an outdated tax structure, is due to expire at the end of the year. The MBT provides a revenue-neutral replacement that will spur job creation by rewarding companies that invest in our state.
In developing the tax reform legislation, House lawmakers consulted with leaders from the public and private sectors, including tax experts, small business leaders, local government, the nonprofit community, organized labor and others. The result is a package that incorporates elements from the plans offered by Governor Jennifer M. Granholm, the State Senate, the Michigan Chamber of Commerce, the Grand Rapids Chamber of Commerce and others.
"Michigan's credit rating has been downgraded again, and the longer we wait to replace the SBT, the longer it will take for us to turn our state's economy around," said State Representative Lee Gonzales (D-Flint Township). "The MBT is a strong package, and I urge the Senate to act quickly on it for our state's economic future."