Small Business Reacts to House Income Tax Rollback Proposal

Date: January 11, 2017

January 11, 2017 (Lansing) – The state’s leading small-business organization, the National Federation of Independent Business (NFIB), said it was looking forward to a discussion on eliminating the state income tax this session. The state House is expected to lead off the new session today with the introduction of House Bill 4001 that would begin rolling back the state income tax rate until it reaches zero. Senate Finance Committee Chair, Jack Brandenburg, has indicated that he will begin hearings on similar Senate legislation yet to be introduced.

 

“Michigan has come a long way in improving the business climate, and we are open to any efforts to continue that progress,” said NFIB State Director Charlie Owens. “For many small businesses that are not corporations, the income tax is their primary business tax as they pass through profits from the business to their income tax return.”

 

Owens qualified his enthusiasm with the caveat that any income tax phase out that factors in increases in other taxes would need to be evaluated carefully by small business. “In the past, there have been proposals to lower or eliminate the income tax that were predicated on increases in other taxes to make up some or all of the revenue,” said Owens. “Our members have not been receptive to some of those proposals, particularly ones that included an increase in the sales tax or expanding the sales tax to services to make up the difference.”

 

Owens said that NFIB small business members would have the final say in any proposal as the group will place the issue before its members for a vote. “We are anxious to see the proposals that emerge so we can share them with our small business members,” said Owens. “The perspective of the people that have to make payroll and pay taxes in our state is always the best litmus test for any proposal.”

 

 

For more information about NFIB, please visit www.nfib.com.

Related Content: Small Business News | Michigan | Taxes

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