Small Business Rejects Ballot Proposal to Hike Business Taxes
The Michigan Chapter of the National Federation of Independent Business (NFIB), announced its opposition to an effort by a construction labor unions to raise the state’s Corporate Income Tax rate from 6 percent to 11 percent in order to increase road funding.
“This is just another attempt at using class warfare as a front to raise taxes on those who provide the jobs in Michigan,” said NFIB State Director Charlie Owens. “The changes to Michigan’s business taxes by Governor Snyder and Republicans in the legislature are finally pulling Michigan out of the mess of the Granholm years and this proposal is a giant step backward.”
The labor unions are hiding behind a front group they formed called “Citizens for Fair Taxes”. The group indicated on their website that their plan is to conduct a petition drive to put the proposal before the Legislature. The Legislature would then have 40 days to respond to the proposal. With the current Republican control of the Legislature it is likely that the proposal would be voted down or not acted on, in which case the measure would go on the November 2016 ballot for voters to decide.
Owens said that while it may be tempting to think that the proposal is a quick answer to funding roads, it would actually end up giving Lansing politicians more money to spend. “Road funding proposals have been put forth that seek to use more of the money currently in the budget rather than raise taxes to fund the full amount,” said Owens. “If this proposal passes, lawmakers are off the hook in seeking better alternatives for road funding and will now have that much more to spend on other things – and spend they will.”
“Proposal backers should be honest with the voters and call themselves ‘Citizens for More Taxes’,” said Owens. “If they succeed with this proposal, Michigan will have one of the highest corporate income tax rates in the country and the result will be less investment by business and a subsequent loss of jobs and opportunity for Michigan’s working families.”
“Michigan needs to continue with the success of higher personal incomes and job growth that have resulted from current tax and economic policy and stop listening to community organizing groups that want to return to the Granholm era of high taxes and unemployment,” said Owens.
