MBT Impact Assessment Subcommittee hears testimony from Saginaw business owners
Friday, May 16, 2008
LANSING — Business owners from across mid-Michigan testified before the Senate MBT Impact Assessment Subcommittee Friday on ways to improve the state’s new Michigan Business Tax.
“Business is the backbone of Michigan’s economy,” said subcommittee chair Sen. Mark Jansen, R-Gaines Township. “The MBT shouldn’t hinder the state’s job providers. If businesses are experiencing a greater tax burden because of the MBT’s unintended consequences, then we need to rectify this problem.”
The MBT replaced the widely despised Single Business Tax last year. Since the inception of the new tax, the Finance Committee has heard copious testimony that the tax is unduly harming small businesses.
“Small businesses employ the majority of our people,” said Sen. Roger Kahn, R-Saginaw Township. “At a time when we are fighting to create jobs and improve the state’s economy, we cannot have a tax structure that places further burden on our small businesses. The testimony received from Saginaw-area job providers will help legislators to more effectively address their concerns.”
Jack Provenzano is a CPA with Gardner, Provenzano, Schauman and Thomas, a public accounting firm in Saginaw. He cautioned lawmakers to be attentive to businesses of all sizes when considering possible changes to the tax.
“Whatever you do with the MBT, remember we can be fair to everyone,” said Provenzano, who has 30 years of accounting experience. “But if you can’t keep the people who make the state go, then we’re in trouble. The people who make money are the ones who create jobs. And we don’t want to lose the ability to attract them.”
Jansen was selected to chair the MBT Impact Assessment Subcommittee by Senate Finance Committee Chair Nancy Cassis, R-Novi. Other members of the bipartisan subcommittee include Sens. Jud Gilbert, R-Algonac, and Michael Prusi, D-Ishpeming.
“If we are going to make improvements to the MBT, then we need to hear from those actually pay the new tax,” Gilbert said. “Today’s hearing gave business owners the opportunity to let us know what changes can be made.”
Recommendations will be made to the Senate Finance Committee in June.
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