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January 24, 2007 Tax Cut or Tax Increase?

January 24, 2007
Yesterday speaking before the Lansing Economic Club, Senate Majority Leader Mike Bishop made it clear that a revenue neutral SBT replacement tax "is not our goal".  The Senate Republicans are looking to propose a replacement tax with an overall tax cut to business and a structure that will stimulate economic growth.  Meanwhile, Governor Granholm has said that, given the current financial crisis facing the state, her revenue neutral Michigan Business Tax proposal offered in December may no longer be available.  So, are we going to see a tax increase on business proposed by the Governor?  Many insiders believe that the Emergency Fiscal Panel Granholm appointed will recommend a tax increase on business which the Governor will adopt.  When will we move from rhetoric to actual bill language?  The Senate Republicans will introduce their replacement tax bill "in the next several weeks."  Governor Granholm's spokesperson said her proposal will be released in February when the 2007-2008 budget proposal is released.
June Summers Haas