LANSING – A day after Senate Republican leaders tried to advance a budget-slashing plan that would eliminate hundreds of jobs and gut funding to public safety and schools, the House on Monday passed a key budget proposal to save the state $500 million a year by ending tax loopholes. The plan is part of a comprehensive House strategy to resolve the state's unprecedented fiscal crisis through cuts, reforms and revenues.
"Giving tax breaks to a select group of corporations while others pay their full share under Michigan's tax code is not the right way to bring our state together during these tough times," said State Representative John Espinoza (D-Croswell). "We cannot afford to spend $500 million in taxpayer money to help a few private businesses when our communities are facing deep cuts in health care, schools and public safety."
Currently in Michigan, telecom companies receive tax breaks that add up to about $37 million a year. Michigan gives a break to oil and gas companies that amounts to $3.9 million annually. Tobacco wholesalers are allowed to write off their bad debts to the tune of $800,000 each year.
"Ending these tax breaks is a key part of resolving Michigan's budget crisis in a way that preserves our most essential services and protects our communities," Espinoza said. "We need to all work together to do what's best for our state at this time."