(Video) SBAM Praises Governor, Legislative Leaders for Enactment of Historic Business Tax Reform

The Small Business Association of Michigan (SBAM) today praised Gov. Rick Snyder and legislative leaders, as the governor signed into law $1.7-billion in business tax cuts effective next January 1.

“This is literally a once-in-a-generation step forward toward creating a business climate that encourages business owners to grow their companies, create jobs and revitalize their communities,” says Rob Fowler, president and CEO of SBAM. “We are proud of the governor and legislative leaders who had the courage to vote for a measure that moves Michigan’s economy much closer to a prosperity.”

According to the Michigan Economic Development Corporation, about 136,000 businesses pay the MBT, but the Department of Treasury estimates only about 41,000 businesses will pay the 6 percent corporate income tax that will replace it. 

Fowler says he’s confident that the business tax reform will lead to small business job growth. In an online survey, SBAM asked small business owners: “If Gov Snyder’s 6% Corporate Income Tax Plan becomes law, and your small business no longer pays business taxes, what will your company do?” From companies who identified themselves as Second Stage, which historically have created the bulk of new jobs in the economy, SBAM got these responses :”(companies could select more than one option that applied): 64% said they would add employees, 58% said they would expand their business, 65% said they would buy new equipment, 72% said they would raise wages and benefits for their current employees and 57% said they would realize the profits.