Gov. Whitmer’s small business tax is a step backward for Michigan
March 6, 2019
LANSING, MI – The Small Business Association of Michigan (SBAM) today expressed opposition to the significant tax increase on small businesses proposed by Gov. Gretchen Whitmer in her Fiscal Year 2020 budget.
The proposed “pass through” tax increase amounts to a 41 percent small business tax increase, impacting more than 100,000 small businesses in Michigan.
“Michigan has made substantial economic gains in employment since double taxation on small businesses was eliminated in 2011,” said SBAM CEO Rob Fowler. “Gov. Whitmer’s proposal would be a major step backward and a job-killer for small businesses, who make up most of the employment and employment growth in our state.”
According to the Institute of Business and Entrepreneurship, more than 437,000 Michiganders are employed at companies with fewer than 99 employees.
“Today’s proposal singles out smaller companies that have been essential to our economic resurgence,” said Brian Calley, president of SBAM. “This new small business tax will hurt small businesses and undo our economic growth. We should be sending small businesses a thank you note, not a substantially higher tax bill.”