LANSING – State Rep. Gino H. Polidori (D-Dearborn) praised Governor Jennifer M. Granholm's plan to restructure the state's Single Business Tax, calling it a bold initiative to strengthen Michigan's economy.
"This is an important plan that will encourage businesses to invest in Michigan and bring good-paying jobs into our state," Polidori said. "Michigan is a great place to do business, and the Governor's proposal to streamline the Single Business Tax will make it even better."
He praised the plan for offering incentives to businesses that will boost investment, as well as lure and keep good-paying jobs in the state.
"I look forward to working with the Governor and other officials on this plan," Polidori said. "It's an innovative and responsible plan that won't cut funds for our other commitments, like schools and health care. This is a bold, long-term initiative that will strengthen Michigan's economy."
Under the revenue-neutral proposal, more than 70,000 businesses – about 77 percent of businesses in Michigan – will see an immediate tax cut. Out-of-state companies and large insurers who have received preferential treatment on their taxes will now pay a fair rate. Michigan currently has the nation's fourth-lowest taxation on insurers.
The current SBT disproportionately taxes employee wages, health care and equipment. When businesses add jobs, or expand or upgrade their equipment, they pay more. The Governor's plan will:
• Provide a credit for research and development labor costs;
• Base taxes more on profits; and
• Remove incentives for businesses to move jobs out of Michigan.