GRANHOLM - Governor Granholm: Senate Joins House in Failing to Protect Michigan Families

LANSING – Governor Jennifer M. Granholm today said again that she would be willing to eliminate the Single Business Tax (SBT) if, and only if, doing so does not lead to higher taxes on Michigan families or deep cuts in critical health care, education, or public safety services.

Granholm restated her commitment while expressing disappointment that the Republican-led state Senate refused to support Democratic amendments to a bill eliminating the SBT, which would have guaranteed a revenue neutral plan that included no tax increase on families and no cuts in vital services. Granholm said she would sign a bill to eliminate the SBT if it contained such guarantees.

“Republicans made clear today that they intend to raise taxes for Michigan families by $800 or gut education, health care, and public safety in order to finance a tax cut for business,” Granholm said. “It’s disappointing that Senate Republicans chose not to protect Michigan families and the services they need.”
Granholm noted that more than a year ago, she offered Michigan businesses a fair and responsible plan for cutting taxes without shifting the burden of paying for essential government services to our families.

“Our plan was revenue neutral and would not raise taxes on Michigan families nor force draconian cuts in education, health care, and public safety,” Granholm said. “The vote today made clear the differences between us.”

Granholm’s comments followed a largely-partisan vote in the state Senate on House Bill 5743 which would eliminate the state’s business tax on December 31, 2007. The state House of Representatives passed the legislation last week.

“As I talk to business leaders, urging them to create jobs here, it’s become clear that we will grow our economy only if we adopt responsible corporate tax policies that allow us to hold down taxes on individuals while also improving education, providing adequate heath care and insuring public safety,” Granholm said. “This legislation, without the amendments proposed by Senate Democrats fails to meet that standard.”

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