LANSING – State Representative John Espinoza (D-Croswell) today praised Governor Jennifer M. Granholm's pro-business, pro-growth plan to replace Michigan's Single Business Tax (SBT) with the Michigan Business Tax (MBT), which rewards companies by eliminating taxes on payroll, benefits and health care. The MBT will reduce taxes for 77 percent of the state's businesses, slash personal property taxes by 46 percent, and protect $600 million in tax cuts already signed into law.
"The plan is fair and broad-based, and it will help get our economy back on track by attracting new businesses to our state," Espinoza said. "By offering some of the lowest tax rates in the nation, Michigan will be able to market itself as a great place to do business. Our state will become a magnet for jobs and growth, which will pay off in dividends for our workers."
The MBT, which rewards more companies than any other SBT replacement plan offered by other groups including the Detroit Chamber of Commerce and the Grand Rapids Chamber of Commerce, will:
- Create a broad base with tax rates among the lowest in the nation, and well below the current SBT rate.
- Cut the personal property tax for industrial and commercial businesses by 46 percent.
- Reward companies that offer good-paying jobs by eliminating taxes on payroll, benefits and health care.
- Give high-tech companies that specialize in cutting-edge fields such as life sciences and advanced manufacturing a $125 million tax cut, create a new MEGA credit to encourage research and development, and continue MEGA credits for high-tech jobs.
- Give small businesses a boost by exempting businesses with less than $350,000 in gross receipts from taxation.
"Under this plan, revenues for education, health care and public safety are protected – three areas that are essential to safeguard," Espinoza said. "The plan also safeguards Michigan's future by creating a business-friendly atmosphere for companies that will create 21st century jobs for our workers. This plan is a win-win for Michigan businesses and residents."