Thursday, November 8, 2007
Warning to businesses owners, you are about to get whacked
News Flash! Dateline - Lansing, MI
Tax policy is, at this moment deliberating on how to replace the service tax. They are going to assess a 32.9% surcharge on the final MBT tax bill of every business that pays MBT! In other words, if you qualify to pay MBT, (and you do if your total business activity is over $350,000), you can figure out your liability and then tack on an additional 32.9%.
UNLESS, you have a really good lobbyist or you are a really large company. Certain unnamed large Michigan companies will be exempted from this surcharge. And there is a cap on the surcharge of $2,000,000.
I just received a letter urging me to vote today for a "surcharge on the Michigan Business Tax equivalent to the revenue the services tax was intended to provide." The letter was sent by a consortium of large businesses in Michigan. You know who I am talking about, automotive, chemical, food, insurance...all the big guys who will either be exempt or can afford the bill for the short run.
Like I said yesterday, this is a choice between death and dismemberment. Stay tuned for further developments...
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4 comments:
Jack,
Are these people insane. I own a small business that was 100% subject to the services tax and now this. Where can I get a good buy on plywood. I better hurry as there will be a run on it to board up the businesses leaving the state. I know when I lose business, I cut expenses. Why is it so difficult to do that for the state?
I've said before and I will say it again. Will the last one out of the state please turn out the lights?
OH OH I guess I wasn't thinking. There won't be any lights left.
God save us from the Dems.
I hope this does NOT go through. So much is made of the small business being the backbone of our economy. The largest employer, ect. As such, I hope that those who are elected to office realize that a lot of people will be affected by this outrageous tax.
I'll be calling my family (small business owners) as soon as I post this to let them know what their government is doing to them.
It sounds like it's time to start cutting costs at the government level. All this uncertainty is going to scare off any new companies thinking of moving to Michigan.
I am glad that this whole thing has come to light in the last few months. It's really opened my eyes on how the government operates.
Glad there is somebody working on our behalf! Keep it up!!
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