April 19, 2007
April 19, 2007
Further delays detrimental to business community, Michigan's economy
LANSING - Governor Jennifer M. Granholm and the Michigan Chamber of Commerce today said it is urgent that state lawmakers work now to replace the Single Business Tax (SBT) and end the uncertainty hanging over Michigan's business community. Granholm and Chamber President James Barrett said lawmakers can no longer ignore the urgency surrounding the business tax issue.
"Across the state and around the globe, businesses are making decisions on whether to expand or locate in Michigan, and, in some cases, businesses are deciding whether to move out of Michigan," Granholm said. "It is unconscionable to expect companies to make those decisions when they have absolutely no idea what their tax obligation will be on January 1, 2008. It's time to act."
Barrett said the Michigan Chamber and the governor are on the same page - now is the time for lawmakers to make the tough decision on replacing the Single Business Tax.
"Businesses, large and small, are the heartbeat of Michigan's economy, and they need to know what is expected of them," Barrett said. "We were pleased when lawmakers voted to eliminate the SBT, but we fully expected them to agree on a replacement by mid or late April. However, months have passed and the House and Senate have made very little progress in resolving this critical issue."
While Granholm and the Michigan Chamber have outlined different approaches to replacing the SBT, both agree that the issue needs to be resolved by state lawmakers so the state treasury department and business taxpayers can implement and comply with a new business tax. That process will take at least six full months, which means a new business tax should be in place by June 30, 2007.
Michigan's SBT is scheduled to expire on December 31, 2007.
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