Just Say NO to Dick and YES to Jen - Reason #9

What's Dick DeVos' biggest complaint about Michigan?
Business Taxes.
Why?
He says they are preventing new businesses from coming to Michigan and setting up shop, and creating new jobs. He says it's 'disappointing' and 'tragic'.
If that were the case, it'd be true.
Too bad Dick doesn't really know Michigan.






9. Dick DeVos doesn't really know about Michigan enough to fix it.
A recent study by the non-partisan Upjohn Institute found that changes in Michigan's business taxes would have very little, if any, impact on Michigan’s unemployment rate. Michigan’s economic problems are a result of: 1) slow national economic growth under Bush; and, 2) more importantly, the slump in the U.S. auto industry and the fact that Michigan is far more dependent upon the auto industry than any other state, according to a recent report by the respected Upjohn Institute for Employment Research in Kalamazoo. (W.E. Upjohn Institute for Employment Research, “Michigan’s Economic Competitiveness and Public Policy,” August 11, 2006)







9. Governor Jennifer Granholm knows exactly what Michigan needs, she's been working hard on it and getting results.
Since taking office, Governor Granholm has signed 72 targeted business tax cuts. What's more, Michigan’s business taxes are very competitive. Michigan currently has the 13th lowest state and local business tax burden in the country, according to the Council on State Taxation, a non-profit trade organization of 670 multistate corporation. Michigan’s tax burden is significantly better than other states in the Midwest.

Among the 72 Tax Cuts enacted by Governor Granholm, here are just a few. Chances are, you or your employer have benefitted by one or more of these tax cuts. (View full list here)

p" width="53">

12/20/05

	Tax Cut	Public Act	Bill	Effective Date	Description
1	Tax Abatement for Bio-Diesel Manufacturing	2003 PA 5	HB 4010	04/24/2003	Extended the tax abatement under the Plant Rehabilitation and Industrial Development Act (PA 198) to businesses engaged in the creation or synthesis of bio-diesel fuel.
3	Removed Health Cares Costs from Single Business Tax Base for 2004, 2005, and 2006	2003 PA 240	SB 672	12/29/2003	Cut single business tax obligations by removing from a taxpayer’s tax base a portion of the payments a taxpayer makes for health benefit plans that benefit Michigan residents. 5% percent of health care costs are exempted from the base in 2004, 20% 2005 and 40% in 2006.
4	Removed Health Cares Costs from Single Business Tax Base for 2007 and after	2003 PA 241	SB 673	12/29/2003	Cut single business tax obligations by removing from a taxpayer’s tax base a portion of the payments a taxpayer makes for health benefit plans that benefit Michigan residents. 50% percent of health care costs are exempted from the base in 2007 and after.
7	Single Business Tax Credit for Distressed Businesses	2003 PA 251	SB 821	12/29/2003	Authorized the Michigan Economic Growth Authority to approve a single business tax credit for a distressed business equal to up to 50% of unemployment taxes for qualified new jobs and up to 25% of unemployment taxes for other jobs.
9	Doubled Single Business Tax Credit for Apprenticeship Training	2003 PA 273	SB 814	01/08/2004	Allowed tool and die manufacturing companies to claim a single business tax credit of up to $4,000 per apprentice or special apprentice trained in a tax year. Prior to enactment such credits were capped at $2,000.
10	Personal Property Tax Changes for Special Tools and Standard Tools	2003 PA 274	SB 811	01/08/2004	Modified “special tool” and “standard tool” definitions to reduce personal property tax obligations under The General Property Tax Act.
13	Personal Property Tax Exemption for Pharmaceutical Companies	2004 PA 79	HB 4472	lign="top" width="53"> 04/21/2004	Allowed the governing body of a local tax collecting unit to adopt a resolution exempting from personal property taxes all new personal property owned or leased by eligible pharmaceutical companies located in that local tax collecting unit.
15	Single Business Tax Exemption for Start-up Businesses	2004 PA 126	HB 5331	lign="top" width="53"> 05/28/2004	Provided a “qualified start-up business” a credit against its single business tax obligation equal to its tax liability if the business is without business income for two consecutive years. The credit could be claimed in the second of those years. The credit is available for tax years beginning after December 31, 2004 and cannot be claimed for more than five tax years.
22	High-Technology and Manufacturing Job Creation Single Business Tax Credits	2004 PA 319	SB 1274	08/27/2004	Allowed businesses with annual gross receipts of $10 million or less to claim a credit against their single business tax liability equal to the following percentages of compensation paid by the taxpayer to employees who performed "created jobs" (in high-technology or manufacturing in Michigan): -- For annual Michigan capital investment of less than $150,000, 0.5%. -- For annual Michigan capital investment of $150,000 or more, but less than $750,000, 1.5%. -- For annual Michigan capital investment of $750,000 or more, 2.0%.
24	City Utility Users Tax Exemption for Start Up Businesses	2004 PA 322	SB 1303	08/27/2004	Authorized an exemption for up to 5 years from the city utility users tax for a qualified start-up business.
28	New Tax-Exempt Redevelopment Renaissance Zone	2004 PA 430	SB 1453	12/20/2004	Authorized new Redevelopment Renaissance Zones in addition to currently authorized Renaissance Zones to promote the development of existing industrial facilities. A “Redevelopment Renaissance Zone" means a Renaissance Zone that contains an industrial site of 200 or more acres located in a city with a population of more than 7,500 and less than 8,500 and in a county with a population of more than 60,000 and less than 70,000. A businesses in or a resident of a Renaissance Redevelopment Zone receives exemptions, credits, or deductions from the single business tax, state and local income taxes, the state education tax, property taxes, various specific taxes, and, in Detroit, the city utility users tax.
31	Targeted MEGA Tax Credit for to Retain Jobs at a Rural Business at Risk of Closure	2005 PA 185	SB 798	10/24/05	Allows a targeted MEGA tax credit against SBT liability for a rural business facility to retain 300 jobs (to benefit a Cadillac manufacturer).
33	Venture Capital Investment Income Tax Reduction	2005 PA 214	SB 521	11/21/05	Exempts gains from venture capital investment from income tax if proceeds are reinvested in another venture capital firm.
36	Manufacturers’ Personal Property Tax Credit for 2006	2005 PA 289	HB 4982	Provides a refundable 15 % personal property tax credit against SBT liability for industrial property in 2006.
37	Manufacturers’ Personal Property Tax Credit for 2007	2005 PA 290	SB 909	12/20/05	Provides a refundable 15 % personal property tax credit against SBT liability for industrial property in 2007.
43	Special SBT Provisions For Delphi/Visteon	2005 PA 296	SB 203	12/20/05	Extends the provision that disregards sales of a spin off corporation (Delphi/Visteon) to the parent (Ford/GM) in calculating the SBT tax base apportionment formula. Modification limits the sales that will be excluded to sales from plants located in Michigan to a parent location in Michigan. In addition, provides that future buyers who purchase a Michigan Visteon plant owned by the Ford holding company will have sales from that plant to Ford in Michigan disregarded in calculation of their apportionment formula.
47	Expand Historic Preservation Single Business Tax Credit	2006 PA 53	SB 570	03/09/2006	Authorizes Single Business Tax credit for the rehabilitation of historic resources located within a municipality without a historic preservation ordinance if the resource is located in a summer resort and family association. Retroactive to January 1, 2005.
50	New Brownfield Tax Credits	2006 PA 111	HB 4733	04/10/2006	Create a new category of brownfield tax credit against single business tax liability with a less onerous approval process for projects with a cost of less than $2 million. Up to 100 projects per calendar year could be approved for these new brownfield tax credits.
		2006 PA 112	HB 4734	04/10/2006
		2006 PA 113	SB 599	91 days
58	Expand Renaissance Zone Tax Credit Eligibility for Pharmaceutical Companies	2006 PA 116	SB 922	04/11/2006	Expand definition of eligible pharmaceutical companies to include companies that employ 4,800 persons engaged primarily in research and development of pharmaceuticals.
59	Expand Rural Businesses Qualified for Michigan Economic Growth Authority (MEGA) Tax Credits	2006 PA 117	HB 5640	04/11/2006	Expand definition of a rural business to include two additional counties, increasing eligibility for MEGA tax credits against Single Business Tax liability.
64	New Renaissance Zones for Renewable Energy Facilities	2006 PA 270	SB 1078	07/07/2006	Authorizes up to 10 additional renaissance zones for renewable energy facilities. A businesses in or a resident of a Renaissance Zone receives exemptions, credits, or deductions from the single business tax, state and local income taxes, the state education tax, property taxes, various specific taxes, and, in Detroit, the city utility users tax.
71	Research and Development Compensation Tax Credit	2006 PA 323	HB 4971	07/20/2006	Creates a new research and development compensation tax credit against Single Business Tax liability for persons engaged in research and development of a qualified technology.