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BUSINESS TAX
(2007-05-03)
(wgvu) - THE STATE HOUSE HAS PASSED ITS VERSION OF
LEGISLATION TO REPLACE MICHIGAN'S MAIN BUSINESS TAX.
THE HOUSE PASSED THE MAIN BILL IN THE PACKAGE WEDNESDAY BY A
61-TO-48 VOTE. DEMOCRATS FAVORED THE PLAN WHILE MOST REPUBLICANS
OPPOSED IT.
THE STATE SENATE, WHICH IS CONTROLLED BY REPUBLICANS, HAS ITS
OWN BUSINESS TAX REPLACEMENT PLAN.
IT COULD BE VOTED ON AS EARLY AS THURSDAY.
DIFFERENCES BETWEEN THE TWO BILLS WOULD HAVE TO BE HAMMERED OUT
IN A CONFERENCE COMMITTEE.
THE HOUSE PLAN HAS BEEN FAIRLY WELL-RECEIVED IN THE BUSINESS
COMMUNITY, GETTING THE ENDORSEMENT OF SEVERAL BUSINESS AND
GOVERNMENT ASSOCIATIONS AND EMPLOYERS SUCH AS FORD MOTOR.
BUT IT HAS DRAWN CONCERN FROM SOME WHO MAY FACE HIGHER TAX RATES
OR MAY NOT BE ELIGIBLE FOR TAX CREDITS THAT WOULD BE AVAILABLE
UNDER THE PROPOSAL.
THE PLAN WOULD REWARD COMPANIES THAT CREATE JOBS IN MICHIGAN,
BUT COULD SHIFT MORE OF THE BURDEN TO THOSE HEADQUARTERED OUT OF
STATE.
THE LEGISLATURE IS WORKING TOWARD REPLACEMENT OF THE STATE'S
CURRENT SINGLE BUSINESS TAX, WHICH EXPIRES AT THE END OF THIS YEAR.

(COPYRIGHT 2007 BY THE ASSOCIATED PRESS. ALL RIGHTS RESERVED.)


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