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Granholm Signs Bills to Create Thousands of Jobs for the Future, Diversify the Economy
November 21, 2005
November 21, 2005
Signs business tax cuts, won’t take effect until Legislature acts responsibly
LANSING – Governor Jennifer M. Granholm today signed a package of bills that will invest more than $2 billion to create thousands of new jobs and diversify the state’s economy. The state will invest nearly $1.5 billion dollars; that investment is expected to leverage an additional billion dollars or more in private investment focused in four key growth areas: life sciences, advanced manufacturing, alternative energy, and homeland security. The bills create a 21st Century Jobs Fund which will be used to invest in new technologies that will drive Michigan’s economy into the future.
“Today is a turning point for Michigan’s future,” said Granholm. “By investing billions in diversifying our economy, we will create thousands of new, good-paying jobs that won’t be outsourced and that will encourage our children to build their futures in Michigan.”
The Governor’s jobs plan will capitalize on the best research and commercialization opportunities in the four key growth areas in order to create good-paying, high-tech jobs that can’t be outsourced. In addition, the bills signed today will create:
- up to $450 million through the Venture Capital Investment fund to help start-up companies succeed;
- new tax incentives to encourage investors to make and keep their investment dollars here in Michigan;
- an improved business climate with lower fees and less red tape for new businesses in Michigan;
- new incentives to encourage life sciences companies to use Michigan suppliers and services.
Granholm also signed targeted tax cuts that would help existing manufacturers keep jobs and facilities in Michigan, encourage consolidation of their out-of-state operations here, and help small businesses by reducing their tax rate and cutting red tape. However, Granholm said the shortcomings in the Republican tax package would have given businesses a tax cut at the expense of citizens. She vetoed two tax bills that created new tax loopholes for business. Because the vetoed bills were tie-barred to the tax cut bills, the tax cuts will not take effect until the Legislature submits legislation to the Governor that will offer tax cuts for manufacturing without harming citizens.
Granholm said she expects the Legislature to make fixing the bills and sending her a package that offers manufacturers help without asking citizens to foot the bill their first priority upon returning to Lansing next week.
“Our manufacturers and small businesses deserve tax restructuring that provides immediate relief and levels the playing field,” said Granholm. “But we can’t offer that help at the expense of citizens. We’ve reached an agreement to do just that once before; I urge the Republicans to move quickly to do it again. In light of the GM announcements today, I urge the Republican leadership in the Legislature to get back to work and to act with urgency, in a bipartisan manner, to benefit all of Michigan. I am hopeful they will get back to work and get the job done right.”
The jobs bills were given immediate effect.
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