The mixed-bag of reactions to Governor Rick Snyder’s proposal for revamping Michigan
Individuals representing retirees, including retired state employees that just took the early-out incentive package, explained to the panel that tax-free pensions had been promised and plans were made accordingly. Throwing-out ideas such as increasing liquor or tobacco taxes as alternatives, those testifying claimed that the estimated $612 million the elimination of the pension exemption would create is not worth it, given the exchange for an 86-percent business tax cut. The pension issue was also protested Tuesday by an estimated 500 seniors organized by AARP.
The Committee also heard from author and newspaper columnist Mitch Albom with a plan to keep the film production incentives at a level keeping Michigan Michigan
Business groups continued to trumpet their support for the Snyder Administration’s proposal. The Michigan Association of Homebuilders lent their support for the Governor’s overall budget recommendations, including the taxation aspects. Earlier in the debate the Michigan Chamber of Commerce, Small Business Association of Michigan, and The National Association of Small Business all announced support for the new business tax.
While the Senate Republican Caucus continues to debate the issues in order to develop its own plan, expected before the end of March (a Senate Republican Caucus retreat is scheduled for March 22nd), some business groups caution against tinkering with it too much. Rob Fowler and Doug Rothwell, President and CEO of the Small Business Association of Michigan (SBAM) and Business Leaders for Michigan, respectively, explained the proposals overall fit with the budget recommendations and touted the plan’s move to make Michigan’s tax structure more competitive – all the while not closing the door on possible alternative plans from the Senate.