Michigan governor proposes more taxes
Bidness: Considering that business wise Michigan's economy is a living hellhole, these new taxes are just what businesses need at this time.
|Wednesday’s Senate hearing will begin a scramble by lame duck lawmakers to either forge a new business tax before their session ends Dec. 31, or punt the issue to the newly-elected Legislature next year. According to sources, Granholm’s tax proposal would: · Impose a 1.875% tax on profits · Impose a 0.125% tax on gross receipts and assets · Exempt commercial and industrial equipment from the statewide 24-mill personal property tax that helps pay for schools. The lost revenue would be recouped through the new business tax formula. · Increase the state tax on insurance company premiums, from the current 1% to 1.25%. · Result in no reduction in revenue for the state. Whether the plan flies in the lame duck session is problematic. Many Republicans and business groups insist that any new business tax result in a net tax cut. Among them is House Speaker Craig DeRoch, R-Novi. “I want a tax code we can advertise in California and Ohio as a reason to locate in Michigan,” DeRoche said. Tricia Kinley, tax policy analyst for the Michigan Chamber of Commerce, said there is not enough time in the lame duck session to resolve an issue as complex as overhauling state business taxes. She said any new tax that doesn’t result in an overall tax cut “falls short in a very significant way.”|