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House Tax Hearing on MBT

March 21, 2007
March 21, 2007.  The House Tax Policy Committee took testimony on Wednesday on the Administration's Michigan Business Tax Proposal.  Not surprisingly, testimony was offered in support and opposition to the plan.  Support was provided by the Michigan Department of Treasury, Grand Rapids City Mayor and various school groups.  Opposition was provided by the Michigan Chamber of Commerce, IIM Life Insurance, the Detroit Regional Chamber of Commerce, Taxpayers United, the Michigan Business and Professional Association and NFIB.  Tax Policy Chair Steve Bieda would not take testimony on the services tax and limited comments to the Michigan Business Tax.  The Michigan Chamber noted that the MBT and the Chamber plan, SB 151, were similar in that they both have gross receipts and business income in the tax base but there the similarities ended.  Scott Schrager speaking for Treasury said that the MBT was the only plan that did not favor one group of taxpayers over another.  The debate will continue.