Advocacy News – April 29, 2021<\/b><\/p>\n
Chamber led\u00a0HB 4288<\/a> (Tisdel)\u00a0recently\u00a0moved out of committee on a party line vote.\u00a0 The legislation would provide $190 million in tax savings for \u201cpassthrough businesses\u201d or ones organized as partnerships, LLCs, and S-Corporations, for example.\u00a0 The savings come at no cost to state revenues,\u00a0meaning this proposal would provide\u00a0$190 million in tax savings for businesses with no loss in state revenues.<\/i>\u00a0 The tax dollars businesses save are from the federal government.\u00a0\u00a0\u00a0 For more details on the bill see the previous article\u00a0HERE<\/a>.<\/p>\n All Republicans on the committee supported the bill while all Democrats \u201cpassed\u201d except for Democratic State Representative Julie Brixie who voted no.<\/p>\n The Michigan Chamber has worked in good faith with the Department of Treasury who initially opposed the bill based on certain technical objections to the language and the need for $10 million in additional funding for one-time implementation changes. After months of work, all the Department\u2019s issues with the bill language were resolved and a $10 million appropriation is in the budget that is currently moving through the legislature.\u00a0 Even though we have given the Department everything they have requested, they still oppose on \u201cbroader budget concerns\u201d.<\/p>\n We have come to find out that these \u201cbroader budget concerns\u201d deal with the income tax trigger expected to be hit and result in an automatic lowering of the state income tax rate.\u00a0\u00a0(See related article\u00a0HERE<\/a>.)\u00a0 In fact, during committee Representative Brixie offered an amendment that would not allow the tax cut to be enacted unless the trigger provision is repealed.\u00a0 The amendment was not adopted but, this is why she voted no and her colleagues \u201cpassed\u201d.<\/p>\n Democratic lawmakers and, it seems, the Department of Treasury\u00a0are\u00a0trying to link a bill that will keep $190 million in OUR State\u2019s economy as opposed to sending it to Washington D.C. to a totally unrelated tax policy issue.\u00a0 It is incredibly unfortunate that the Democrats on the Tax Policy Committee could not go along with a simple, no brainer tax relief proposal.\u00a0\u00a0We\u00a0think they will soon see their strategy is poor and get on board.\u00a0 Time will tell.<\/p>\n