Michigan Votes Forum

Introduced in the House on August 17, 2005, to make various revsions to provisions of the Single Business Tax.. Specifically, to add to "business income" in the SBT calculation formula the amount of the federal domestic production activities deduction; treat members of a limited liability company (LLC) like officers, shareholders, partners, and individuals for purposes of the small business credit; incluce all members of a group of companies with common ownership in determining whether a controlled group is small enough to take the small business credit; eliminate the SBT apprenticeship credit; prevent firms with an unused SBT loss or credit obtained while filing separately from using up that loss or credit faster by filing a joint return with an affiliate in a later year; and specify that underpayment due to some of the changes proposed in the bill with respect to the small business credit would not subject the taxpayer to penalties. The bill is part of a tax revision package that trades off tax cuts with certain increased tax levies and other measures to create a net business tax cut. See House Bill 5108

The vote was 57 in favor, 49 opposed and 4 not voting

(House Roll Call 370 at House Journal 71)

Click here to view bill details.

Rep. Bieda, having reserved the right to explain his protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted "no" on House Bill 5098 because the bill fails in several ways to reflect the agreement reached between Governor Jennifer Granholm and legislative leadership. Without addressing the SBT sunset we are negligently positioning the state for financial crisis. This is unfortunate, because the residents of this state want and deserve a comprehensive jobs package."

Rep. Cushingberry, having reserved the right to explain his protest against the passage of the bill, made the following statement: "Mr. Speaker and members of the House: I voted no because the bill fails in several ways to reflect the agreement between Governor Granholm and Legislative leadership. Without addressing the SBT sunset (which I co-sponsored over 20 years ago to assist our manufacturers) we are negligently positioning the State for a further financial crisis. The residents of this State want and deserve a comprehensive jobs package. If tax cuts were the solution to the drain of jobs since the 1970's in our State then the tens of billions of dollars cut should have us leading the world in retention and development of jobs. I regret having gotten us in a unsustainable contest of succumbing to the Whit email of some actors in the business community through so called incentives of tax cuts. We need to concentrate on creating a Civil and Civic literate workforce through adult education and internet/television education free to all in Michigan and allowing the local clerks to purge voting lists to improve the Democratic image of our State. The shift of tax burden from commerce to the residents in Michigan remain unconscionable and this bill would simply shift the burden to the individual taxpayers and families from business."

She would have to decide whether to govern in the interests of families and actual job providers, or whether to continue to just strike poses for the union dinosaurs and environmental extremists. Without a GOP majority to stop such nonsense amendments like this would land on her desk and she would have to either anger her union buddies or drive employers out of the state: Meissner amendment to levy a higher Single Business Tax rate after 2008 on the Michigan operations of firms that "contribute to the violation of internationally recognized workers rights" of workers in other countries (including "acceptable" miniumum wages and occupational health and safety regulations). The amendment does not specify how the Michigan Department of Treasury would define and enforce this last provision.