LANSING – State Sen. John Proos was the first co-sponsor for Senate Bill 1, a measure to repeal the Michigan Business Tax (MBT).
“The MBT and the 22 percent surcharge are not business friendly and must be eliminated for Michigan to recover economically,” said Proos, R-St. Joseph. “I agree with Governor Snyder that this tax is pushing job providers out of Michigan. Jobs are my focus, and that is why I co-sponsored legislation to repeal this punitive tax. It’s time to make Michigan open for business.”
In his State of the State address, the governor called for eliminating the MBT and replacing it with a 6 percent corporate net income tax.
“Ever since the MBT was enacted in 2007 it has proven overly complicated for job providers and has stood as another barrier to job creation,” said Proos. “I look forward to working with Gov. Snyder on scrapping the MBT and surcharge and replacing it with a tax system that is simple and fair for all Michigan businesses.”
Experts believe that repealing the MBT would increase employment in Michigan and increase total investment in the state by billions of dollars.
“The MBT was supposed to be better than the old SBT it replaced. Instead, as Michigan’s unemployment rate continues to be one of the nation’s highest, we have one of the most complex, unfair and burdensome business taxes in the country,” Proos said. “It is key that we reform and reinvent Michigan to make our state more business-friendly, so that we can keep our current job providers and attract new ones.”
Proos added: “We must reform our tax code to be fairer, flatter, and less complicated, giving Michigan businesses certainty to invest in people and jobs. Repealing the MBT and 22 percent surcharge is an important step in this process.”
SB 1 has been referred to the Senate Finance Committee, of which Proos is a member.