Chamber Opposed to Job-Killing Tax Increase on Small Businesses

March 6, 2019

The Michigan Chamber today issued the following statement in response to Governor Whitmer's budget proposal to increase taxes on small business.  

"We want to be loud and clear on this," said Michigan Chamber President & CEO Rich Studley. "The Michigan Chamber strongly opposes a $280 million tax hike on small businesses and other job providers. Period." 

In the Governor's first budget proposal released Tuesday, March 5, Whitmer proposed increasing the tax paid by pass-through businesses, like S-Corps and LLCs, from 4.25% to 6% - resulting in a $280 million tax increase. This tax increase is said to help pay for a $300 million repeal of the income tax on state employee pensions. 

"So, essentially, the Governor wants to raise taxes on small businesses to pay for an unfair tax break for government employees," said Dan Papineau, Director of Tax Policy & Regulatory Affairs for the Michigan Chamber. "We strongly urge lawmakers to reject this alarming tax shift."

"This tax increase would be a disaster for small business owners and jobs," added Papineau. "These job providers are responsible for over 60% of all jobs in Michigan."