Sen. Green co-sponsors repeal of Michigan Business Tax
Thursday, February 10, 2011
LANSING—Sen. Mike Green has co-sponsored Senate Bill 1, a measure to repeal the Michigan Business Tax (MBT) and surcharge. The Senate Finance Committee began hearings on the legislation in Lansing this week.
“Our number-one priority must be to make Michigan a good place to do business and attract good-paying jobs,” said Green, R-Mayville. “That’s why I’ve co-sponsored the first bill introduced in the new legislative session to repeal the Michigan Business Tax and surcharge.”
The first-term lawmaker said the MBT, enacted in 2007, has burdened existing job creators in Michigan with higher taxes and has discouraged potential employers from relocating to the state.
A 2008 survey by the Michigan Chamber of Commerce of nearly 700 businesses revealed that 77 percent reported a higher tax burden under the MBT, with one-third reporting an increase in excess of 100 percent.
“Michigan’s unemployment rate is one of the highest in the nation. Jobs and employers have been leaving Michigan for some time,” Green said. “It’s time to send a signal that Michigan is open and ready for business and that starts with eliminating the MBT.”
Economists have estimated that as many as 57,000 net new jobs would be created in the first year after a full repeal of the MBT and surcharge, and 120,900 jobs by 2016.
“Repealing the MBT will spur the creation of thousands of jobs in the first year alone and attract billions of dollars of investment to Michigan,” Green said. “It’s a bold first step in the reforms we need to reinvent Michigan.”
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