The most significant business tax reform in a generation has cleared the legislature. Yesterday, the Senate approved legislation to eliminate the Michigan Business Tax (MBT), replacing it with a flat 6 percent corporate income tax.
The final vote was extremely tight, with Lt. Governor Brian Calley casting his vote to break a 19-19 tie. The bill represents a huge victory for small business, as it ends the double taxation of business income. Over 95,000 small businesses owners will no longer be saddled with the burden of paying both the Michigan Business Tax and Personal Income Tax on business income. The new corporate income tax not only provides much needed tax relief, but also provides business owners a simpler and more equitable tax structure.
Rob Fowler, president and CEO of SBAM, told the media Thursday that “we deeply appreciate Senate Majority Leader Richardville’s stalwart leadership in ensuring passage of this historic tax reform. This is literally a once-in-a-generation step forward toward creating a business climate that encourages business owners to grow their companies, create jobs and revitalize their communities. We are proud of the State Senators who withstood a withering barrage of attacks by opponents and had the courage to vote for a measure that moves Michigan much closer to a prosperous future.”
Fowler added: “My observation is that it’s curious that for all the talk from our friends on the Democratic side of the House and Senate about supporting small business, not a single Democratic lawmaker voted for this tax reform – an issue that we think is the single most important small business issue to come before the legislature in a generation. At the end of the day we, not them, get to determine what issues are important to small business.”
If your lawmaker voted for business tax reform, please contact him or her today to thank them for supporting the most important reform for small business in decades. If they voted no, then they also need to hear from you about your disappointment in their lack of support for small business growth.