KEY LEGISLATION:
Senate Republicans
Set Legislative Agenda
The Senate Republican Caucus released a 35-point legislative action
plan it says
"focuses on creating jobs, strengthening families and continuing
to improve the
quality of Michigan schools while also bringing state spending in line
with existing revenues."
Those points of particular note to retailers are:
• Pursuing a tax pause for new businesses
• Completing the recycling package
• Fighting the ozone non-attainment standard
• Developing "scam-free zones"
• Pursuing Land Use Report recommendations
• Modernizing the Drain Code
• Enacting an identity-theft package
• A prize and sweepstakes regulation act
• Health savings accounts
• Mental health parity
Senate Leader Calls Governor’s Jobs Plan ‘Anemic’
Senate Majority Leader Ken Sikkema called Gov. Jennifer
Granholm’s jobs
plan "anemic" and insufficient. Michigan lost 33,000 jobs
in December,
more than twice as many as any other state, and Sikkema acknowledged
the figures were an impetus for the creation of the GOP’s JOBS
2 plan,
to be unveiled in the coming weeks.
Not much is known about JOBS 2 at this time. According
to Sikkema,
JOBS 2 does not include plans to expand the sales tax act to entertainment.
Sikkema also said the Senate will be holding numerous oversight hearings
into issues of importance to retail, including electric deregulation
and tax restructuring.
Income Tax Cap Bill Faces Tough Road
A resolution giving voters the option to cap the state
income tax at 3.9 percent
was considered by the House Tax Policy Committee. Rep. Leon Drolet (R-Clinton
Twp.),
the sponsor of the bill (House Joint Resolution T), invited Lansing
economist
Patrick Anderson to make a presentation to the committee on the effect
of lowering taxes.
While Anderson presented how tax policy affects job
creation, he stopped short of
supporting the resolution. Committee members also questioned whether
the
resolution was necessary, because the last time the income tax rate
was increased
was 1983, and the result was overwhelming turnover in the legislature
through the election process.
Several on the committee also questioned the timing
of the resolution. Drolet claimed
that the timing was perfect, because the scheduled income-tax-rate reduction
to 3.9
percent was just delayed until July 1 and a statewide election is coming
up.
Treasury opposed the resolution, stating that if the income tax rate
is capped,
business taxes remain as the only target in times of economic crisis.
No votes were taken on the resolution, and the issue will continue to be debated.
KEY BILL INTRODUCTIONS:
No bills to report at this time.
To view the content and current status of retail-related
bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
Specific comments or questions regarding this bulletin
should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
