Senate passes improved BEST plan
Thursday, May 03, 2007
LANSING - The state Senate today passed the Republican proposal to jump-start and diversify Michigan's economy and create jobs, said Sen. John Pappageorge, R-Troy.
The Republican plan also will make the state more competitive, provide a long-term solution for economic growth, and provide a fair and equitable tax structure.
"This a common sense plan for replacing the state's Single Business Tax," Pappageorge said. "We need to do everything possible to make Michigan a more attractive place to do business. Under the old tax structure our businesses were unfairly burdened by taxes - this tax is fairer to companies and replaces a large portion of the funds collected by the SBT."
The Business and Economic Stimulus Tax (BEST) plan provides a tax cut to job providers, and it replaces $1.56 billion of the $1.85 billion generated by the SBT.
Significantly, more than 100,000 businesses - or more than 90 percent of the 108,000 businesses that currently pay the Single Business Tax - benefit from the BEST plan. In addition to the 25 percent Personal Property Tax credit, the plan completely exempts new industrial equipment purchased in 2008 and beyond.
"I'm glad to see such an important piece of legislation approved," Pappageorge said. "This is a sound tax plan and has broad support from the business community."
Senate Bills 94 through 96 now move to the House for consideration.