March 27, 2006
LANSING – Governor Jennifer M. Granholm today sent letters to the Republican leadership, calling on them to protect vital services and families before giving final approval to legislation that will accelerate the repeal of Michigan’s Single Business Tax (SBT).
“So far, the Legislature has chosen the easy route and voted to repeal an unpopular tax. You have only done half the job,” Granholm wrote in letters to Senate Majority Leader Ken Sikkema and Speaker Craig DeRoche. “I call on you to finish the job. Pass legislation now that fully protects vital services like education, health care, and public safety and that also guarantees that businesses will pay their fair share of taxes without forcing Michigan families and citizens to shoulder new tax burdens.”
House Bill 5743 would eliminate the Single Business Tax on December 31, 2007.
The Governor says the bill includes no effective mechanism to protect Michigan residents from the massive cuts in education, health care, and public safety that will result from elimination of the SBT. The tax generates nearly $2 billion each year to support those and other important services for Michigan citizens.
Granholm also said the nonbinding enacting sections of the bill are legally ineffective and leave Michigan’s working families exposed and unprotected from being forced to pay new and higher taxes currently paid by businesses.
“I will not sign House Bill 5743 in its current form,” Granholm wrote. “House Bill 5743 can be amended to guarantee Michigan families and citizens needed and effective protection. Amend the bill to include such safeguards, and I will sign the bill.”
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