The Michigan Chamber has long called on Congress and the President, to prioritize investing in our country’s ever-deteriorating infrastructure. In addition to our calls on the federal government to work on a bipartisan infrastructure package, the Michigan Chamber has pushed for more funding at the state level, as well as the form of user-based taxes and fees.
What happened:
President Biden announced the details of his sweeping infrastructure plan yesterday. The details of the plan, named “The American Jobs Plan,” can be found HERE. The plan includes a focus on areas such as:
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- Transportation Infrastructure
- Public Utility Infrastructure
- Homecare Health System Infrastructure
- Green Energy Investments
- Repeal of Right to Work and Prevailing Wage Requirements
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Alongside the President’s infrastructure plan were the details on how these investments would be paid for through “The Made in American Tax Plan,” which is on page 22 of the document linked above. The tax plan, more aptly named “The Made Anywhere but America Tax Plan,” will increase taxes on businesses and individuals to a level that could be the highest in our Country’s recent history and higher than any modern country in the world.
Why it matters:
While increased investment in our country’s infrastructure is critical and will help promote a modern economy and job creation, increasing taxes on American job providers will negatively impact our global competitiveness and strain the economic advances that have been made over time. All this has happened during a time when our employers are most sensitive, given the pandemic and the uncertainties that remain.
Massive tax increases of the sort President Biden is suggesting will lead to job loss, in addition to economic contraction. A business’s ability to grow, thrive and be successful will be immensely impacted by the tax policy proposals being suggested by the administration in Washington D.C.
Strong opposition:
The Michigan Chamber supports calls for needed investment in our infrastructure but coupling any proposal to the tax increases that are being pursued is something we must oppose.
Largely absent from the discussion on infrastructure investment is any recognition of the importance to focus on user-fee-based policies while making significant short-term investments that will foster more manageable, long-term upkeep of our country’s infrastructure. The proposal looks to be wildly unsustainable and will ultimately not solve America’s infrastructure needs in the long run.
The tax increases the Biden administration has suggested will cause businesses to flee our borders, seeking more favorable tax treatment. Additionally, it will make America and Michigan the last place businesses will ever consider investing or relocating to.
What we’re doing:
Working with Michigan’s congressional delegation and the US Chamber of Commerce, we are warning policy makers of the dramatic and negative consequences these tax increases will have on Michigan’s success.
Additionally, we are pulling together our volunteer leaders to analyze and help prepare Michigan Chamber members for what could happen if the tax proposal becomes law. A webinar is scheduled April 27. Information on the webinar can be found HERE.
The Michigan Chamber signed on to a letter along with over 300 organizations, urging Congress to find a bipartisan solution on infrastructure by the Fourth of July. While the President’s announcement is discouraging, it is only the beginning of a long and overdue negotiation on the subject of infrastructure investment.
Dig deeper:
For more information regarding this issue, please contact Dan Papineau at dpapineau@michamber.com.