State Senator Patrick Colbeck (R) today co-sponsored legislation to eliminate the Michigan Business Tax (MBT). The bill (SB 1) has been referred to the Senate Finance Committee.
“The Senate has demonstrated its commitment to moving forward with policies that will promote job creation and draw job providers to the state by introducing as its first bill the elimination of the MBT,” Colbeck said. “The money freed up by the elimination of the MBT will allow job providers to hire more workers. This tax has proved to be a major obstacle to job growth and economic development and its elimination will be the start of a new, welcoming business environment in Michigan.”
The MBT was originally designed as a replacement for the onerous Single Business Tax. Once enacted, the MBT proved to be too complicated and burdensome for businesses and has remained an obstacle in drawing new businesses to the state. Elimination of the MBT will be the first step in redefining Michigan’s business environment and enabling businesses to create new jobs.
Colbeck sees this bill as an opportunity not only to lower the costs on job providers but to restructure state government spending and bring it in line with revenues. SB 1 highlights the need to reevaluate how revenue is collected by the state. In addition to that, Colbeck wants to see a renewed focus on how government is spending that revenue.
“This legislation is the first step in defining a new way to operate and finance our state’s budget. We can rein in state spending by evaluating the services that government provides and determining areas where we are truly getting value for our dollars and areas where we can make improvements. Through prioritization and evaluation of services we can construct a tighter, fiscally responsible budget and lower the costs to taxpayers and businesses,” Colbeck concluded.