LANSING ? The Small Business Association of Michigan praised the Legislature?s passage of a tax cut package for manufacturers.
?We should do all we can to help save the industries that are closing plants and eliminating jobs, but we must also nourish the fast-growing small businesses that are expanding their workforces and building the foundation of Michigan?s future economic growth,? says SBAM Vice President Government Relations Barry Cargill. ?The bills now going to the governor help our beleaguered manufacturing sector, and that benefits all of us in the state; however, we look forward to legislative action early next year on tax relief aimed specifically at the small business sector,?
He says that small businesses will benefit from the Single Business Tax (SBT) rate cut, but also need improvements to the SBT Alternative Tax and innovative changes like a transferable R&D credit.
Cargill says Michigan needs a strong economic strategy that includes reduced government spending, business tax relief and fundamental reform of our tax system.
?We reject the idea that the state budget is as lean as it can possibly be. We reject the belief that business tax cuts only benefit business owners. We reject the concept that there is something fiscally responsible about doing little more than tinker with the nation?s worst business tax system,? Cargill says.
He says the scheduled repeal of the SBT remains an important issue to small business. ?After these piecemeal attempts at tax relief are concluded, we believe it will be important for policymakers to come back to the negotiating table for a serious debate on fundamental tax reform after the 2006 elections.?
