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Tue November 27, 2012
Snyder Administration Proposes Industrial Tax Phaseout
Governor Rick Snyder and Lieutenant Governor Brian Calley want the Legislature to enact a major tax overhaul before its current session ends in two or three weeks. It would phase out Michigan’s tax on business and industrial equipment.
It’s widely agreed the tax discourages investment and is a particularly large burden on manufacturers. The phase-out would take 10 years, with smaller businesses benefitting first.
Lieutenant Governor Calley says Michigan’s economy is still rooted in manufacturing.
“Eliminating this disincentive to invest will help improve our climate for job growth," he says. "Our whole state will benefit.”
The holdup has come from local governments and school districts, which rely on that revenue. The plan would guarantee money for police, fire and other emergency services, but only if voters approve the plan in a statewide election. Other services could face cuts.