LANSING – Of all the disagreements which have occurred over the last six months in Lansing, it appears an agreement has been reached on the $1 billion securitization of the state?s tobacco settlement, the Small Business Association of Michigan reports.
Senate Majority Leader Ken Sikkema made a statement that the bill, which has already passed the house, will be taken up and voted on this week in the Michigan Senate. The Majority Leader also reported he was in daily contact with Gov. Jennifer Granholm on the issue.
Sikkema was also quick to point out not all aspects of what has come to be known as the ?21st Century Jobs Program? is a sure thing. He is referring to the Single Business Tax cuts being proposed by the House. Sikkema remains adamant that there will not be an SBT cut unless it is fully funded.
The Senate has been taking a lead on issue management this fall. The upper chamber made passing the budget the top order of business before taking up any of the economic package. Now it is apparent the securitization measure will move it leaves business taxes on the table.
The message coming from the Senate is any SBT tax cut must be paid for in an ?honest and straightforward manner. Senators are concerned a proposed $142 million SBT cut would create havoc on what is, has and will most likely remain a contentious budget process.
Sikkema is proposing SBT cuts be linked to ?triggers.? The legislature would pass tax cuts; however the cuts would only go into effect when state revenue was more than projected or needed. It certainly puts a question on when or if an SBT cut is likely in the near future. SBT reform is still a top priority to SBAM and our lobbyists will continue pushing for relief and reform.
This business column comes from the Small Business Association of Michigan. To learn more, click on SBAM.Org
