Skip to comments.Mich. gov candidates want to change business tax
Posted on 01/07/2010 12:27:45 AM PST by Cheap_Hessian
LANSING, Mich. GOP gubernatorial candidate Rick Snyder wants to exchange Michigan's main business tax with a flat corporate income tax that would cost businesses less but could leave the state with $1.5 billion less in revenue each year.
In unveiling his proposal Wednesday, the Ann Arbor businessman adds his voice to those of other Michigan gubernatorial candidates who have called for changing the way Michigan taxes businesses.
Under Snyder's plan, the Michigan Business Tax which generates $2.2 billion a year would be eliminated. Instead, the state would examine what businesses list as federal taxable income and levy a flat 6 percent tax on that amount, raising about $700 million annually.
Snyder said the state could make up the $1.5 billion lost by reducing what it spends on public workers' wages and benefits, scaling back about $30 billion in special tax breaks and making government run more efficiently.
Gov. Jennifer Granholm wants to eliminate the 22 percent surcharge that was added to the business tax in late 2007 to replace an unpopular sales tax on services.
But swapping the business tax for a flat corporate income tax would ignore half the business income in the state that comes from companies that aren't formed as corporations, Granholm spokeswoman Liz Boyd said.
"The Michigan Business Tax is a balanced tax that was designed with the Michigan business community," Boyd added. "It's designed to help them pay for services."
Nearly all the gubernatorial candidates, Democrats as well as Republicans, have suggested doing something with the business tax or at least the added surcharge.
(Excerpt) Read more at news.yahoo.com ...
Uhh..lets move this chair over here and that one over there..The Titanic will still sink but the Carpathian is changing course for China if you get my drift. Tinkering and Dithering ain’t gonna save em.
Liberals think this way.
They constantly say that if you lower a tax we have less. They NEVER EVER think that lowering the cost of anything means more people buy it thus surpassing previous sales and nearly ALWAYS means greater tax revenue.
Governor Jennifer Grandtheft did say “You will be blown away”.
My business saw this tax double over the old SBT. I am glad to see it has helped my small business grow. LOL
With the current defection of Michiganders to other states there won’t be enough people left to keep the state from being “blown away”.
Say what you will, this guy is a wiz kid. Graduated undergrad at 19, MBA from U of M at 20 and law degree at 23. A self made millionare. And he is twice as articulate as DeVoss.
They still have businesses in Michigan?