LANSING – To quicken the pace for turning Michigan's economy around, State Representative Mike Lahti (D-Hancock) today announced that the House has strengthened its comprehensive business tax and incentive package that rewards investment and protects Michigan-based companies and sent the package back to the Senate.
"The Upper Peninsula needs jobs, and the Michigan Business Tax is a comprehensive approach to jumpstarting our economy that will give our state the boost it needs," Lahti said. "This plan will draw emerging industries and 21st century jobs providers to Michigan. We want to send the message that businesses that invest in Michigan will be rewarded."
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The Single Business Tax (SBT), widely regarded as an outdated tax structure, is due to expire at the end of the year.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 a variety of leaders from the public and private sectors, including tax experts, small business leaders, local government, the nonprofit community, organized labor, and many others. The result is a comprehensive package that incorporates elements from the plans offered by Governor Jennifer Granholm, the State Senate, the Michigan Chamber of Commerce, the Grand Rapids Chamber of Commerce, and others.
"Michigan is facing a financial crisis, and waiting is not an option," Lahti said. "The Michigan Business Tax will make Michigan an economic powerhouse in the 21st century. I urge the Senate to act quickly on this in order to get our state back on track."