Many business groups across the state say they aren’t thrilled with the prospect of Governor Whitmer raising their taxes.
The leaders of a couple of those groups were at the Capitol today.
The Economic and Small Business Development Committee met this afternoon with business leaders, including Brian Calley, the former lieutenant governor and the current president of the Small Business Association of Michigan.
They say small businesses are important because nearly two out of every three jobs in Michigan come from a company with less than a hundred employees.
Currently, small businesses that report business income on their personal income tax returns are taxed at the individual rate of 4.2 percent.
In her budget proposal, Governor Gretchen Whitmer would tax these same businesses at six percent, what larger corporations pay.
Calley said the proposal will hurt the people who provide most of the state’s jobs.
“The small business tax is particularly troubling,” said Calley. “These are really the drivers of employment and opportunity and growth in our state and the idea of adding an additional tax return on top of a small business and raising their taxes and really singling out- strangely singling out small businesses for a tax increase is really the wrong strategy.”
Not only would it take more money out of their pockets, Calley also said the governor’s new proposal would take the simplicity out of the current filing system and make it much more complicated for business owners when filing.