LANSING –Senator Arlan Meekhof, R-West Olive, joined Governor Snyder today as the Governor signed legislation to reform Michigan’s tax structure.
“This is a historic day. I campaigned on the promise to repeal the Michigan Business Tax and improve our economy. For too long now, our businesses and citizens have suffered as a result of the oppressive MBT. It is my privilege to be present for the signing of this legislation. This day is long overdue,” said Meekhof.
The package of bills replaces the Michigan Business Tax with a six percent tax on corporations and will result in a net tax cut for businesses of $453.8 million in fiscal year 2012, $192 million in fiscal year 2013, and $66.1 million in fiscal year 2014. The legislation closes future business tax loopholes and eliminates instances of double-taxation for many small business owners. Under the MBT, more than 95,000 small businesses had to file two returns.
“Instead of relying on an overly complex system that discouraged businesses from locating in our state and required special tax credits in order to relieve the tax burden on some of our critical job providers, this new tax structure is simple and fair for all businesses and eliminates the need for government to pick winners and losers,” Meekhof said.
Meekhof added: “I have heard from many small business owners in my district who have had to weigh the decision to lay off employees and even close their doors because the cost of doing business was just too high. In order for us to turn our state around, we must support entrepreneurs and innovators.”
“Michigan has lost hundreds of thousands of jobs over the course of the past decade without taking any significant steps to address the root causes of unemployment in our state,” said Meekhof. “The current tax structure does not promote growth and competition. In order to businesses to thrive and create jobs, government must get out of the way.”
Editor’s Note: Photo of Senator Meekhof at bill signing available on the senator’s photowire.