The Michigan 2010 Small Business Agenda
NFIB/Michigan 2010 Agenda
Putting the State’s Fiscal House in Order Without Tax Increases: Because of NFIB efforts, Michigan ended 2009 with a budget balanced with spending cuts and not tax hikes on small business - but the pressure on lawmakers to raise taxes will be even greater this year. NFIB is leading the fight to demand spending reforms and head off new attempts to balance the budget on the backs of Michigan small business.
During the battle to balance the budget NFIB worked with other business groups to draft a road map to address the problems of our state in a manner that will put in place permanent reforms designed to improve the overall business climate of our state for years to come and end the short term crisis management that has typified budget deliberations in recent years. We will continue to push our agenda this year. This road map includes the three key principles:
• Balance the budget without increasing taxes
• Implement substantive spending reforms
• After a balanced budget without raising taxes and action on spending reforms, then, and only then, should overall tax restructuring be discussed.
We do not support discussions of overall tax restructuring or “reform” confined to the goal of increasing revenue to the state so that needed structural spending reforms can be avoided. In this context we firmly insist that any discussion on tax reforms not be undertaken until substantive structural spending reforms are implemented to show good faith by the legislature and the governor that serious reforms are underway.
When the fiscal house of the state is in order and spending reforms are being implemented, then we are willing to participate in discussions concerning what the overall tax structure of the state should look like. However, the goal of these discussions should be to improve the overall business climate of our state so that small business can provide the jobs and commerce Michigan so desperately needs.
No Services Tax To Fund State Overspending: Attempts to pass a services tax and use almost all the money to fund state employee pay raises and benefits failed in 2009 because of NFIB efforts. But they will try again this year. NFIB will not support a sales tax on services to prop up status quo state spending. If serious discussions take place that include using revenue from a services tax to reduce business taxes and exempting business to business transactions – then NFIB is willing to examine such a proposal if it is supported by our membership.
Fix the Michigan Business Tax or Eliminate it: The bottom line is that for many companies the Michigan Business Tax is no improvement over the Single Business Tax (SBT) it replaced and that is why NFIB did not support it. Although NFIB was able to secure a $300 million tax cut for small businesses during passage of the MBT, we will continue to work to make improvements to help business. Efforts will include eliminating the surcharge on the tax and expanding the ability of businesses to use the Alternative Profits Tax method of filing.
Stop Giving State Workers Lavish Pay Packages: Government must consider doing what many private sector employers have already had to do: cut benefits and pay to reflect the reality of the current economic situation. NFIB believes that a big step in cutting state spending is to require the pay, health insurance and retirement benefit levels of state and local government employees be no greater than the average benefit levels in the private sector. We cannot cut state spending without addressing this expense to taxpayers.
Monitor Federal Health-Care Changes in Michigan: The cost of health care continues to be the No. 1 problem for small business. Continued efforts by Congress to address this issue will have a huge impact on Michigan small business. Michigan may need to pass legislation to coordinate state health insurance laws with new requirements from federal health care changes taking place. NFIB will be monitoring this activity to assure that small business concerns are addressed in this process.
Fix Michigan’s Broken Rules Process: Many of the problems faced by Michigan small business owners are the result of rules and regulations and the legislature’s role in checking overzealous state agencies has been diminished to the point of almost no effect. NFIB’s will be working to restore legislative oversight power over state agencies.
Holding the Line on Unemployment Insurance Expansion: NFIB was successful in 2009 in stalling attempts by labor unions to expand Unemployment Insurance benefit payments to workers not eligible to receive benefits now – including part-time workers. Michigan’s Unemployment Insurance fund is already broke and we are borrowing billions in federal loans to pay current benefits. Efforts to expand benefits will result in higher Unemployment Insurance payroll taxes for Michigan business and organized labor will be back again this year to push for these bills.
Prevent Erosion of Liability Reforms in Michigan: In 1995, Michigan enacted some of the most far-reaching reforms in the country to our legal system in order to turn back the tide of runaway lawsuits and jury awards. But one of the few bright spots in Michigan's otherwise troubled business climate is now under full scale assault by the trial lawyers and special interests that want Michigan to become another "legal system lottery" state with large and uncontrolled jury awards. Most small businesses cannot afford to play the legal lottery game and NFIB will be working to protect past reforms and implement new ones.
End Michigan’s Hostile Labor Climate: NFIB/Michigan will be fighting for legislation that would prohibit or prevent local minimum or living wage ordinances and seek to end mandatory union membership in “closed shops.” In addition, NFIB will oppose attempts to force companies to pay union wages on state financed construction jobs through the use of Prevailing Wage Laws or Project Labor Agreements. Finally, NFIB will be working to put a halt to unions using the state as a tool to facilitate organizing or even force workers into unions, such as the recent actions by the state that led to the unionization of daycare providers – with most of the providers unaware that they became union members.