The 2% services tax

[snoogit]

Is this supposed to replace the SBT? anyone have any idea?

[DwntwnGeo]

Is this supposed to replace the SBT? anyone have any idea?

[francishsu]

Is this supposed to replace the SBT? anyone have any idea?

[DwntwnGeo]

No, there's a separate Michigan Business Tax (MBT) plan that Granholm's put forward to replace SBT. MBT itself will be a tax increase over SBT. However, it's also complemented/offset by a proposed reduction to the personal property tax for business. In the end, the SBT replacement (MBT + personal property tax reduction) is revenue neutral and businesses based in Michigan will overall pay less in taxes.

[francishsu]

Thanks for clearing that up. I read the article wrong

[snoogit]

No, there's a separate Michigan Business Tax (MBT) plan that Granholm's put forward to replace SBT. MBT itself will be a tax increase over SBT. However, it's also complemented/offset by a proposed reduction to the personal property tax for business. In the end, the SBT replacement (MBT + personal property tax reduction) is revenue neutral and businesses based in Michigan will overall pay less in taxes.

[RustTown]

What's bad for Granholm is that she's damned if she does, and she's damned if she doesn't. Anyone with even half an understanding of the issue knows that there is no way we can further cut and slash our way to financial solvency, alone. The problem is that ANY tax Granholm proposes will bashed, and she can't win. Knowing full well that the SBT was hardly one of the top five or ten hinderances to business in Michigan, it was thoroughly irresponsible that it was eliminated without a full replacement(s)/reworks.

[snoogit]

What's bad for Granholm is that she's damned if she does, and she's damned if she doesn't. Anyone with even half an understanding of the issue knows that there is no way we can further cut and slash our way to financial solvency, alone. The problem is that ANY tax Granholm proposes will bashed, and she can't win. Knowing full well that the SBT was hardly one of the top five or ten hinderances to business in Michigan, it was thoroughly irresponsible that it was eliminated without a full replacement(s)/reworks.