House Democrats are looking to double small business taxes from the current 4.25% to 8.5%.
Governor Gretchen Whitmer’s 2020 budget proposed to expand the Corporate Income Tax to include Sub S corporations and other non-C corporate entities such as partnerships, LLC’s, and sole proprietorships by raising the current tax from 4.25% to 6%.
Now state House Democrats are looking to double the tax on these same small businesses to fund roads and a tax break for government employee pensions. A road funding proposal unveiled by Democrats in the state House would double the business taxes on non-corporate small businesses in the state from the current 4.25% to 8.5%. The plan would also raise the current 6% tax on C corporations to 8.5% as well.
The Democrat proposal seeks to saddle Michigan businesses with the cost of road funding to avoid a gas tax at the pump. Governor Whitmer has proposed a 45 cent a gallon tax, however, not one Democrat in the House or Senate has stepped forward to sponsor legislation to implement her proposal.
