ABC Letter to All Lawmakers
To: Honorable Members of the Michigan House and Senate
From: Chris Fisher, Executive Director, Associated Builders and Contractors of Michigan
Date: Sept. 12, 2007
Re: Oppose a Tax on Services!
On behalf of our membership and the men and women who work in the Michigan construction industry, I am writing to urge you to oppose a tax on services, including the placement of a services tax proposal on the statewide ballot.
In the construction industry alone, the negative effects that a services tax will have on Michigan businesses would be devastating. According to the Michigan Department of Treasury's own estimates, a new 6 percent services tax would increase construction costs an astonishing $372 million per year in Michigan.
This proposal will do nothing to help our economy and it would likely deter companies from investing in Michigan and investing in our workforce. For example, if a major company were to consider moving to Michigan and building a new $50 million world headquarters, the 6 percent tax on services would increase the cost of construction by $3 million before they even open their doors. Is this a signal Michigan wants to be sending across the country and around the world?
The effect of a tax on ANY services, even so-called "luxury" items, is neither good public policy nor would it improve the already bleak economy that has left many Michigan families struggling.
In addition, many businesses will have a difficult time dealing with both a new business tax AND a services tax all at once. Compliance will be an administrative nightmare adding to the confusion of also attempting to figure out the new Michigan Business Tax.
Extending the state sales tax to services will place growing businesses, Michigan jobs and our economy at risk. This is something our state economy and fellow citizens cannot afford. Please do what's right for our state and oppose a tax on services.
On behalf of our membership and their employees, thank you for your leadership and commitment to construction jobs in Michigan.
Urge your lawmakers to vote NO on a sales tax on services!
