The state Senate voted Thursday to phase out a tax on most industrial and business property in Michigan.
The tax is a big revenue generator for school districts and local governments.
Senate Republicans amended their original plan so it now provides some assurances it won’t force big cuts to education and other services.
Senate Majority Leader Randy Richardville says the tax on industrial equipment, in particular, is so unique it drives investment elsewhere.
“And other states in the Midwest and, in fact, around the country don’t do that and so, in order to be competitive, we have to eliminate this,” he says.
Republicans rejected efforts by Democrats like state Senator Steve Bieda to link the rollback to job creation targets.
“If these tax breaks are meant to create jobs, then we should be making sure that jobs are created,” he says.
Democrats say the rollback is part of a pattern in Lansing of shifting the tax burden from businesses to individuals.