Repealing the Michigan Business Tax

The first bill introduced by the Michigan legislature is HB 4001.

Read Bill here

What will this do to the low income residents in Michigan?  Any "breaks" that are given to the rich are then spread out among those that are not rich to make up the loss.

Remember the Lame Duck session?  The top 2% of the nation's wealthiest got a tax break.

Once the Michigan Business Tax is repealed, it is estimated that the state of Michigan will lose 523 million in annual revenue.  So how will the state recapture those monies?

The State's Republican's would like to see the Earned Income credit be repealed.  That's right, you read that correctly.  The poorest families in Michigan, those making under 36k a year, will lose that credit.  It is estimated that the state pays out approximately 330 million a year in EIC.

Painful cuts coming

Michigan businesses would then be charged a flat 6% corporate tax to make up for the other 200 million.

Those that qualify for the earned income credit, stimulate the economy at tax time.  They have the money to buy big ticket items that they otherwise would not be able to afford.

The argument is that repealing this bill will add jobs.  So, those of us who live in Michigan will get more part time, minimum wage jobs without benefits.

Call or email your State Reps.  Don't let them continue to look out for their corporate buddies.