Legislative & Regulatory Advocacy
Business Tax Reform

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We Won the Fight!
But the Battle Continues
MMA Drafting ideas to Eliminate the MBT Surcharge

1/18/2008

The MMA and its Tax Advisory Committee drafted a plan that spurred the elimination of the damaging business-to-business services tax, a major win for manufacturers.

Now the Association is watching with hawks eyes to see how the implementation of the Michigan Business Tax (MBT) shakes out.

“If Michigan wants to gain any ground in 2008, it is critical that the state’s tax structure continues to align itself with the competitive challenges of tomorrow,” Chuck Hadden, MMA vice president of government affairs, said.

During 2008, manufacturers will receive credits that will help to spur economic revitalization via the MBT. However, the original amounts for compensation, investment, economic development and research and development credits that were originally included in the MBT were reduced in the Legislature’s final agreement on the MBT surcharge.

“The credits offered in the original version of the MBT were a big selling point of the legislation to businesses,” Hadden added. “When those credits were reduced, we were obviously very unhappy. That is why we’re working on a reform plan that will reduce the cost of government and enable the elimination of the MBT surcharge as soon as possible.”

In addition to working on a plan to eliminate the surcharge, the Association will be looking to make the necessary changes that not only simplify the tax structure but will also help manufacturers to remain competitive.

“Michigan’s still got a long way to go if we want to restore our prominence on the national stage,” Hadden said. “This year will be a critical turning point for our state and it is our goal to make sure manufacturers come out on top.”

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