Fight for Tax Fairness -- Balancing the Budget
Small business is the key to any state economic recovery and any plan that does not recognize that is doomed to fail. In examining tax climate, state spending should be addressed and not just replacing declining tax revenues dollar for dollar as was done with the new Michigan Business Tax (MBT). 2007 was a sorry year for Michigan business on the tax and budget fronts. While the repeal of the short lived six percent tax on selected services late last year was a welcome relief to many businesses, hiking other business taxes, as was done with the MBT surcharge, to make up the revenue is another blow to the already beleaguered Michigan business climate. Lawmakers seem unable to restrict spending at a time when many businesses are struggling to make ends meet. Unfortunately, there is another projected deficit for the 2009 budget year and the tax and spend crowd will be looking for more revenue. The likely approach this time around will be to raise "fees" and pretend they are not taxes. NFIB will be fighting to halt attempts to raise business taxes by "fees" or any other method. As businesses struggle to come to grips with the many unanswered questions surrounding implementation of the new MBT in 2008 it is also imperative that Treasury not be allowed to impose penalties on taxpayers that make a good faith effort to be accurate in their estimated tax payments. In addition, as the tax is rolled out many unanticipated errors and unintended consequences will need to be dealt with.
NFIB will be pushing for legislation in these areas as well as seeking repeal of the MBT surcharge.
