Taxes are a necessary tool for the government to create a safe environment and to provide opportunities for all citizens. Unnecessarily high or complex taxes can stifle economic growth and dampen the entrepreneurial spirit. Michigan should aim to have a simple yet equitable taxation system that promotes economic growth and prosperity while cultivating an environment friendly to entrepreneurs and innovation.

Because the majority of small businesses are pass-through entities and report their income under the owners of the business, changes to the individual income tax greatly affect small businesses. Lower individual income tax rates allow more money to remain in circulation in Michigan’s communities and allow entrepreneurs to reinvest in their businesses. SBAM strongly opposes efforts to raise the individual income tax rate, and to adopt a graduated income tax in Michigan.

To ensure that Michigan’s small businesses can compete on a national and global level, lawmakers must avoid policies that present small businesses with additional tax burden beyond what is typical. SBAM opposes measures to expand the sales tax to include services and supports measures to eliminate Michigan’s commercial Personal Property Tax.

Michigan’s small businesses are significant investors in state government. SBAM believes that tax dollars should be spent in an efficient and effective manner, providing real value to taxpayers.