LANSING ? The Small Business Association of Michigan support portions of the $3 billion jobs and tax cut package announced Friday by Gov. Jennifer Granholm.
?We?re underwhelmed by the tax cut piece but encouraged by the provisions that move us toward improving our entrepreneurial climate,? said SBAM President and CEO Rob Fowler.
?The additional $300 million for early stage business development and the new tax incentives for angel investors will help make Michigan much more competitive in generating new business startups. And, our small business owners who are manufacturers will benefit from the immediate 15 percent refundable personal property tax credit.
?However, we?d like to see the details on how much of a rate cut is planned for small businesses that pay the alternative tax. The leaders said the health care tax is eliminated. We?d like to know when,? Fowler said.
The SBAM president says small business owners are concerned about the proposal to cut the Single Business Tax by only .05 percent, and then not until 2009.
?Time and again, small business owners clearly said that if Michigan wants to grow the small business economy then the SBT needs to be eliminated. It?s hard to believe there is any economic stimulus effect from a promise to cut the SBT by a small amount some time in the future.?
Fowler says Michigan?s economic future is substantially dependent on a strong economic strategy that includes reduced government spending, business tax relief and fundamental reform of our tax system.
?The Job Creation Package is a step forward, but it certainly doesn?t take us all the way toward improving entrepreneurial dynamism. We hope lawmakers will now turn their attention toward the fundamental tax reform that is so vitally needed to turbo charge our state?s economy,? he said.
For more information, click on SBAM.Org
