09/10/2007
CONTACT: Charles Owens, 517-485-3409 or Jason Brewer, 202-406-4435
LANSING, Mich. -- As lawmakers begin the slow dance of passing a tax increase to shore up the 2008 state budget, a group of small-business organizations calling themselves S.T.O.P. (Stop Taxing Ordinary People) have rallied to halt any attempts by lawmakers to expand the sales tax to services. The group has launched a Web site, www.stoptheservicestax.com, where taxpayers and small-business owners can log on to get information and join the effort to contact lawmakers and defeat the tax.
The National Federation of Independent Business, Michigan Association of Homebuilders, Michigan Grocers Association, Michigan Restaurant Association, Associated Builders & Contractors and the Automotive Services Association have joined the coalition opposing a tax on services. Other businesses, associations and citizens are expected to join the effort in the coming weeks.
"We are turning up the heat on lawmakers to defeat this bad idea," said Charles Owens, state director for the NFIB. "While we appreciate the challenge of balancing the budget, this is the worst of all options being considered."
Although the public soundly rejected the governor's "two-penny plan" that proposed a two percent sales tax on all services earlier in the year, Lansing lawmakers are now considering a 6 percent tax on some luxury services as a way out of the 2008 budget mess. While publicly identifying country club memberships and golf fees as examples of items to be taxed, the actual list under consideration includes such luxuries as legal and accounting services, home repair, car repair, funeral services and more. The complete list under consideration can be viewed on the Web site.
"What Lansing lawmakers consider 'luxuries' are services that ordinary citizens and small businesses use every day. The 6 percent service tax will hit families and small-business owners that are already struggling to make ends meet," said Owens. "The governor's budget document makes it clear that business will pay the lion's share of any services tax and those extra costs will be passed on to Michigan citizens in the form of higher costs, lost jobs and fewer job providers."
Small business in Michigan provides just over half of all Michigan jobs.
"Our members are the corner bakery, the local insurance agent, the small manufacturer, farmer, funeral home, computer repairman, public accountant and a myriad of other entrepreneurs that make up the economic fabric of our state," said Owens. "A new tax on services will push many of them the breaking point -- and put some of them out of business."
For more information visit: www.stoptheservicestax.com.
