Thursday, November 8, 2007
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...
Posted by Jack Hoogendyk at 12:55 PM