Issue Position: Michigan Business Tax

Issue Position

I voted against the final version of the MBT, which may indeed be the worst tax in the country. The Michigan Business Tax came to life as the result of two separate legislative actions in 2007. It was adopted as a replacement for the much hated Single Business Tax, which had been sucking the life out of Michigan's economy for years. Repeal of the SBT was supported by virtually every business interest in the state and I happily voted in favor of it. The original MBT, which I voted for, was designed to ease the burden for Michigan companies in several ways. It was at least partially based on the ability to pay, provided substantial personal property tax relief, included provisions to lower the tax burden for small businesses, and offered tax incentives for companies to invest in Michigan.

Unfortunately, we never had the opportunity to see how the original MBT would work. Months before it was scheduled to go into effect, it was amended to include a whopping 22 percent surcharge on income and gross receipts, a change I vigorously opposed. I voted against the amended version with the surcharge, but it passed both chambers of the legislature, was signed by the governor and became a huge burden to the business community, particularly smaller companies. During my three terms in the state House I voted against hundreds of tax increase proposals. I was considered one of the legislature's leading proponents of business interests, and was named "Legislator of the Year" by the Michigan Manufacturers Association in 2005 and the Michigan Aggregate Association in 2007. As a business owner myself who has paid business taxes for years, I have always understood that the best way to expand Michigan's economy and create more jobs is to develop a business-friendly tax environment.

Source