KEY
LEGISLATION:
Senate Approves
Business Tax Cut
Only a short time after unveiling their proposal for small business
tax
relief, Senate Majority Leader Ken Sikkema and Speaker of the House
Craig
DeRoche are well on their way to achieving their goal. A series of Senate
bills passed through committee and won approval on the Senate floor
in quick
order, with Democrats generally opposing the bills.
For small businesses, the main bill is SB 957, sponsored by Sen. Nancy
Cassis (R-Novi), which cuts in half the small business alternative tax.
For
businesses to be eligible they must have gross receipts of less than
$10
million but more than $350,000. The alternative tax rate would move
from two
percent to one percent.
The cut is estimated to affect roughly 30,000 businesses in Michigan
and
cost the state $21-$31 million a year. Democrats on the committee and
on the
floor argued against it because of the cost. Most opposing the bills
argued
that only tax cuts that are revenue neutral or offset by other changes
should be considered.
The bills now move to the House, where they are expected to be taken
up
early this week and possibly passed prior to the governor’s State
of the
State address Wednesday evening.
House Moves
to Prevent Ergonomics Rule
Legislation to prevent adoption of a state-specific ergonomics rule
passed
the House a day after it moved to the floor from the House Commerce
Committee. HB 5447, sponsored by Rep. Rick Jones (R-Grand Ledge), is
a
preventive measure against a state-specific ergonomics rule that MIOSHA
is
considering promulgating.
The business community came out in force to make sure the bill passed.
The
day after it passed the House, the bill won approval from a Senate committee
and is poised for final passage when the Senate returns the week of
January 23.
While the bill is expected to pass in the same form as it did in the
House,
its future after that is up in the air. Governor Jennifer Granholm has
indicated she might veto the bill. During debate on the issue, Democrats
repeatedly stressed that they believe ergonomics rules save businesses
money
by preventing costly injuries.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
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Lansing, MI 48933
517.372.5656
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Fax: 517.372.1303
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