Small Business Challenges in 2014
Dumping the dreaded Michigan Business Tax (MBT) and replacing it with the new, small business friendly, Corporate Income Tax is a major victory for small business. However, special interests are already looking for ways to “tweak” the tax and expand the base (spread the tax to small businesses not now required to pay the tax) and/or raise the rate in order to increase revenue. Some have even suggested that business should foot the bill for expanded road funding via an increase in the Corporate Income Tax rate.
A case in point is that gubernatorial candidate Mark Schauer claimed during his campaign for governor in 2014 that 95,000 small businesses were not paying taxes under the Corporate Income Tax. As any small business owner knows, that is because they are already paying their business tax under their personal income tax. Liberal tax and spenders believe that unless a small business owner pays twice on the same income they are not paying their "fair share". This kind of economic ignorance is behind efforts to double tax small business just as they were under the old Michigan Business Tax to finance big government spending.