Sen. Jansen continues fight to eliminate MBT surcharge
LANSING — Senate Republican lawmakers Thursday approved legislation eliminating the onerous Michigan Business Tax surcharge, said sponsor Sen. Mark C. Jansen.
Senate Bill 1 would phase out the 21.99 percent MBT surcharge over a two-year period. Jansen’s measure would cut the surcharge by half to 11 percent in 2009 and eliminate it by 2010.
“Job providers across the state are suffering due to the burdensome MBT surcharge,” said Jansen, R-Gaines Township. “Since tax burden leads directly to unemployment, by reducing the surcharge we will help improve Michigan’s economy and create jobs. This measure should have been signed into law last year.”
When the surcharge was created in October 2007 Michigan’s unemployment rate was 7.5 percent. Today’s unemployment rate stands at 10.6 percent, a full 47 percent above the national average of 7.2 percent.
“This proactive solution will ease the tax burden of many job providers, allowing them to stay in our state, keep employing Michigan workers and invest in the future,” said state Sen. Nancy Cassis, R-Novi. “As the chair of the Senate Finance Committee I want to thank Senator Jansen for his steadfast leadership on this issue. It has been a pleasure to work with him to help provide tax relief to Michigan job providers.”
Jansen previously attempted to repeal the surcharge last Senate session, but his bill died in the House Tax Policy Committee after the committee members failed to even consider the measure.
“The time for action is now,” Jansen said. “We want to keep Michigan job providers here in this state, and to do so, we must provide this desperately needed tax relief. I urge my colleagues in the House of Representatives to take immediate action on this crucial piece of legislation, and quickly pass it.”
SB 1 now heads to the House of Representatives for consideration.
Posted: Thursday, January 29, 2009
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