Governor Rick Snyder, Senate Majority Leader Randy Richardville (R-Monroe) and House Speaker Jase Bolger (R-Marshall) joined forces at a press conference Thursday to tout the newly-elected leaders’ accomplishments to date and to address recent tension between the Administration and the Legislature on budget and tax proposals.
Highlighting the Emergency Financial Manager reform, new funding for the Pure Michigan campaign, limitation on new ergonomic standards, repeal of the item pricing law, and new Michigan Natural Resources Trust Fund money, the Republican leaders, joined by Lt. Governor Brian Calley , also described the importance of the work that still lies ahead. Not trying to sidestep the topic of disagreements, the relationships they have forged to ultimately accomplish tasks were stressed over any differences in position.
The Senate Republican Caucus continues to develop additional alternatives to the Governor’s budget and tax proposals; the biggest sticking-point remains the Governor’s plan to eliminate the income tax exemption for public and private pensions. Late last week the Caucus released the majority of their alternative plan, which included increasing the Governor’s proposed 6 percent business tax to 6.75 percent and expanding the base to include not only C-corporations but also S-corps.
Business groups; however, have been steadfast in their support of the Governor’s original proposal. Representatives from the Michigan Chamber of Commerce, the Small Business Association of Michigan, the National Federation of Independent Business, the Michigan Association of Realtors, and the Michigan Auto Dealers Association met with Senator Richardville regarding the Caucus’s alternatives in what was described as a positive meeting that, more than anything, resulted in Sen. Richardville’s increased understanding of the organizations’ position in favor of the Governor’s plan.
Meanwhile, the House Tax Policy Committee continued hearings on the Governor’s proposal as the panel’s Chair, Representative Jud Gilbert (R-Algonac), expects changes to be made. Although a “yes” himself, many of Rep. Gilbert’s Republican colleagues in both the Senate and the House have indicated their current opposition specifically to the pension tax issue.