GRANHOLM - Governor Granholm: Make Business Climate More Competitive Without Hurting Families

LANSING – Governor Jennifer M. Granholm today said she will support legislation to eliminate the Single Business Tax (SBT) if lawmakers send her a proposal that protects families.

Specifically, Granholm says any proposal to eliminate the SBT must prohibit any increase in taxes to families to make up for lost revenue and specifically prohibit cuts to education and health care. Granholm has repeatedly said that any SBT proposal must be revenue-neutral.

“I have proposed sweeping changes to the SBT because it is a bad tax. However, the only thing worse than the SBT, would be shifting that bad tax to the backs of families,” Granholm said. “This proposal would force families to pay $700 more each year in additional taxes or force deep cuts in health care and education, or both. While we need to make our business climate more competitive, we cannot, and I will not, shift the billion dollar tax burden onto the backs of working men and women in this state.”

Granholm’s comments are in reaction to a legislative proposal that would eliminate the SBT without identifying a plan to replace lost revenue to the state.

“Eliminating the SBT without a plan to replace lost revenue is fiscally irresponsible and utterly ridiculous,” Granholm said. “I am looking forward to working with legislators; however, they must have the political courage to come up with replacement revenue.”

Granholm made it clear that while we need to make our business climate more competitive and prohibit tax increases on families, the state cannot slash our investments in education and health care.

“To grow our economy, we need the best educated workforce in the world, and cutting education will prevent us from achieving that goal,” Granholm said. “Slashing health care further will hurt too many too much and place a heavier burden on businesses. In short, we need to guarantee that any replacement for the SBT is revenue neutral.”

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