Dumping the dreaded Michigan Business Tax (MBT) and replacing it with a new small business friendly Corporate Income Tax is a major victory for small business, but special interests are already looking for ways to “tweak” the tax and expand the base or raise the rate. Some have even suggested that business should foot the bill for expanded road funding via an increase in the Corporate Income Tax rate.
After more than 36 years of double taxation and punitive tax policy on small business, NFIB/Michigan was successful in leading the way to repeal the confiscatory Michigan Business Tax (MBT) and replace it with a flat rate Corporate Income Tax.
Yet even as the ink is drying on this monumental legislation, there are already groups that are eyeing changes that would expand the base (spread the tax to small businesses not now required to pay the tax) and raise the rate in order to increase revenue.
NFIB supports the original Corporate Income Tax proposal that has been passed into law and we will fight efforts to change the tax into another monster like the MBT it replaced.