LANSING – House Speaker Andy Dillon (D-Redford Township) today expressed support for a plan to repeal the Michigan Business Tax (MBT) surcharge as part of a larger, comprehensive tax solution to spur investment and attract businesses to Michigan.
"Tax relief for businesses must be a part of our strategy to create more good-paying jobs for Michigan residents," Dillon said. "Repealing the MBT surcharge must be part of a comprehensive solution to reforming Michigan's business tax structure to make our state a magnet for job-providers. It would be irresponsible and reckless, however, to repeal the surcharge without examining how it will affect the state's budget overall."
The Michigan Senate today passed a plan to repeal the MBT surcharge, without having a strategy for filling the $166 million shortfall it would leave in Fiscal Year 2009. The Senate plan would leave a hole in the FY 2010 budget of $457.5 million and the FY 2011 budget of $593.4 million, according to the nonpartisan Senate Fiscal Agency. A partial solution suggested by the Republican-controlled Senate is to freeze Michigan's Earned Income Tax Credit, which gives relief to working families who are already struggling to make ends meet.
"We need bold and swift action that will bring the reform we need to Michigan," Dillon said. "With the state already facing a projected budget shortfall of $1.4 billion for this year and the next, we must move forward with comprehensive tax reforms that won't impede our economic recovery. Additionally, I am adamant that property tax relief for homeowners also must be a part of tax reform in Michigan. The action we take must leave our businesses, working families and state in a strong position as we work to rebuild our economy and get our Michigan back on track"