March 08, 2005
March 8, 2005
Jobs and Investment Act Makes Michigan More Attractive to Job Providers
LANSING – Governor Jennifer M. Granholm today called passage of her Single Business Tax reform package critical to retaining and creating more jobs in Michigan, as supporters of the legislation gathered at the State Capitol to mark its introduction. Granholm also praised the legislation’s sponsors and the business and labor organizations that are working for passage of the package, the most sweeping restructuring of the SBT since its inception 30 years ago.
"We need the Michigan Jobs and Investment Act to grow Michigan’s economy," said Governor Granholm. "Instead of punishing job providers for creating new jobs, this new tax structure encourages job providers to keep jobs here today and grow jobs here in the future."
The SBT package has won the support of the Michigan Jobs and Investment Coalition which brings together business, labor, and civic organizations, including the Michigan Manufacturers Association, major Michigan employers like Steelecase, US Steel, and the Big 3 automakers, the UAW, Michigan AFL-CIO, and the Michigan Municipal League. The plan has also been endorsed by the Small Business Association of Michigan (SBAM).
"It’s not every day you see a coalition like this come together," said Granholm, "but the need to do all we can to bring more jobs to Michigan is something that should unite us all."
In addition to the supporting organizations, Granholm was joined at the event by sponsors of the Michigan Jobs and Investment Act: Senators Buzz Thomas (D) of Detroit and Gilda Jacobs (D) of Huntington Woods and Representatives Paul Condino (D) of Southfield and Andy Meisner (D) of Ferndale.
"I am proud to stand shoulder to shoulder with Governor Granholm and my legislative counterparts," said Senator Thomas. "Governor Granholm’s plan encourages job providers to keep jobs in Michigan. It’s comprehensive, it’s fair and it will help grow Michigan’s economy."
According to Senator Jacobs, the restructuring will help attract new job providers in the future, as well. "This restructuring makes Michigan more attractive for research and development companies," said Jacobs. "Michigan is already home to a majority of North America’s research and development, and they’re poised to grow. This plan will ensure we can compete for that growth in Michigan."
Representatives Condino and Meisner, sponsors of the house bills, call the Michigan Jobs and Investment Act a win for large and small businesses alike. "Three of every four businesses that currently pay the SBT will see a tax cut," said Representative Paul Condino. "And, small businesses benefit even more through a 40 percent rate cut."
Representative Meisner underscored the importance of a restructuring that is revenue neutral with no further negative impacts on Michigan’s state budget. "The Governor recognizes that a competitive tax structure is part of the equation in making Michigan attractive for job providers," said Representative Meisner. "This plan makes Michigan’s tax structure competitive but recognizes that we have to protect Michigan’s quality of life, too."
Key provisions of the Michigan Jobs and Investment Act:
Cuts the rate for all SBT taxpayers - reduced from 1.9% to 1.2% (2 % to 1.2% for small business).
Creates a manufacturing personal property tax credit - manufacturers would get a credit for 35% of personal property taxes paid on property used for manufacturing or R&D purposes.
Creates an R&D credit - taxpayers would receive a credit for1.2% of compensation paid to employees engaged in research and development
For more on the Michigan Jobs and Investment Act, log onto www.michigan.gov or www.michiganlegislature.org.
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