Recent NFIB/Michigan victories:
Small Business Dodges Penalty Tax
As a result of NFIB efforts, as many as 40,000 Michigan employers will avoid an additional penalty tax of $67.50 per employee on top of their regular Unemployment Insurance (UI) payroll tax. In 2009 Michigan employers that have a negative balance in their unemployment insurance accounts would have to pay an additional $67.50 per employee in penalty taxes. However, recent federal stimulus legislation temporarily waives the interest owed to the federal government through December 31, 2010. With NFIB’s efforts, Public Act 1 passes this waiver onto Michigan employers that would otherwise have had to pay an additional $67.50 per employee in penalty taxes.
Keeping Payroll Taxes Down
NFIB has been fighting to halt legislation that would expand Unemployment Insurance (UI) eligibility to include persons not currently entitled to benefits. The proposed legislation would expand UI benefits to part-time workers and provide extended benefits to claimants participating in a work program. Michigan’s UI system is entirely financed by taxes on employers and any increase in benefits or eligibility translates directly to increased UI payroll taxes. The cost of the proposed changes would result in a permanent $69.7 Million annual UI payroll tax increase on employers.
Stop Balancing the Budget on Small Business’s Back
As Michigan’s economic situation deteriorates, politicians that cannot control spending keep looking to Michigan employers to foot the bill for widening budget deficits. NFIB continues to advocate spending restraint and instead of tax hikes on Michigan business. In 2009 NFIB will be working with other business leaders to eliminate the 22 percent surcharge on the Michigan Business Tax and change Michigan’s tax structure to provide relief for job providers.
No Gas Tax Hike on Small Business
During the last lame duck session, big business groups, labor unions and politicians tried to ram through a hidden tax increase at the wholesale fuel level while no one was looking – but NFIB action halted the plan. Now the same legislation has been introduced again and the same groups that want to hide a gas tax increase at the pump also want to allow local governments the ability to tax gasoline and diesel in addition to the statewide tax hike. The same plan would increase motor vehicle registration fees by 50 percent. NFIB continues to fight these plans to hike taxes in 2009.
Unnecessary MIOSHA Rules Stalled
NFIB has been credited with taking the lead on slowing down the rule making process to keep MIOSHA at bay on a proposed “Michigan only” ergonomics rule. Over the last six years the Michigan Occupational Standards and Health Administration (MIOSHA) has been working behind the scenes – without legislative oversight – to adopt a job- killing mandatory ergonomics standard for all employers that would make Michigan the only state, other than California to have such a rule.
Job Killing Services Tax Repealed
Passed by the Michigan Legislature in the middle of the night with no public hearings or input and signed by the governor, a 6 percent tax on selected services would have gone into effect on December 1, 2007. The tax targeted potentially hundreds of services used by consumers and business. NFIB led a coalition of business groups to begin a petition drive to repeal the tax at the ballot box in November of 2008. As a result of our efforts, the legislature backed down and repealed the tax just days after it went into effect.
Making a Bad Tax Better for Small Business
Written by BIG business for BIG business, the Michigan Business Tax (MBT) was passed on June 28, 2007 as a replacement for the Single Business Tax (SBT) which was repealed effective 12-31-2007. To make matters worse, on December 4, 2007, the governor signed Public Act 145 of 2007 to add a 22% surcharge on the MBT to replace the revenue from a repeal of an unpopular services tax. While a number of business organizations supported this tax and the surcharge, NFIB instead worked for substantive relief for small business in this bad tax. As a result, NFIB efforts resulted in provisions in the law so businesses with less than $350,000 in gross receipts are exempt from filing and paying the tax. In addition, NFIB was able to gain $300 million in special small business credits for those businesses that must pay the tax. NFIB continues to work for the repeal of this bad tax.
Small Business Wins Big In Property Rights Protection
As a result of the passage of NFIB backed Proposal 4, small-business owners can breathe a little easier knowing that local and state government will now be prohibited from taking their property and handing it over to a private developer. Since the unfortunate U.S. Supreme Court decision that sided against property owners (the "Kelo" decision), NFIB/Michigan has worked at the state level to end the abuse of private property rights by government, in particular, local government.
State Death Tax Defeated
Every year some politician proposes bringing back the state death tax instead of cutting spending. NFIB/Michigan's grassroots action can be credited for helping to defeat Governor Granholm's proposal to bring back Michigan's dreaded death tax. NFIB had fought for more than 10 years to repeal Michigan's death tax, finally achieving victory in 1993.
Workers' Compensation Tax Halted
Every year, various administrations have proposed to replace general fund dollars with fees and taxes that would have been passed on to businesses to fund the Workers' Compensation Bureau. This action would essentially create a new workers' compensation tax on businesses. NFIB/Michigan has been successful in halting this attempt to place hidden taxes on small business.
