December 01, 2006
December 1, 2006
Governor urges Legislature to pass tax before end of year
LANSING - In her weekly radio address, Governor Jennifer M. Granholm today said her proposed Michigan Business Tax (MBT) is a competitive, pro-growth replacement tax and urged the Legislature to pass it by the end of the year.
"It's time to act," Granholm said. "It's time to adopt the Michigan Business Tax to give businesses a fair, stable tax that encourages growth while protecting the quality of life we enjoy here in Michigan."
The MBT provides a tax cut for more than 75 percent of Michigan businesses that now pay the Single Business Tax (SBT) and provides significant tax relief to those businesses that pay the personal property tax. The MBT has a broad base, does not tax wages and benefits, has a rate that is the lowest in the country, and raises the same amount of revenue as the current tax to ensure education, health care, and public safety are protected.
The MBT, which would replace the SBT that expires next year, would also preserve the $600 million tax cut Granholm signed into law for manufacturers and other industries, while providing Michigan businesses with an additional $150 million tax cut.
Earlier this year, the Legislature voted to eliminate the SBT by the end of 2007. The SBT contributes more than 20 percent of the state budget and helps to fund education, health care, public safety and more. Governor Granholm said failing to replace the SBT puts these programs at risk and would require either significant cuts in funding or an increase in the taxes citizens pay, both unacceptable options. Failing to replace the SBT also creates uncertainty that makes recruiting new companies or encouraging existing Michigan companies to expand very difficult.
"It is a fairer, simpler tax that is the right tax for Michigan's businesses," Granholm said. "Our citizens deserve to know the things we value - public education, health care, public safety - won't suffer devastating cuts."
The governor's weekly radio address is released each Friday morning and may be heard on broadcast stations across the state through an affiliation with the Michigan Association of Broadcasters. The address will also be available on the Governor's website on Mondays as a podcast for general distribution to personal MP3 players and home computers.
Broadcasters Note: Governor Granholm's radio address can be accessed through Sunday evening exclusively through the Members Only page of the Michigan Association of Broadcasters website.
Publishers Note: The text of today's address is attached.
