Mom and pop shops: Get ready for new tax (i.e. Detroit Free Press sticks foot in mouth)

[Montauk6]

(See sidebar clarification)

Gov. Jennifer Granholm will offer a new business tax plan today that would more heavily tax company profits, cut by nearly half personal property taxes on business equipment, and spread taxes more evenly among businesses, including some that don't pay now, people familiar with the plan said Tuesday.

Granholm's proposal to replace the state's Single Business Tax (SBT) goes before the Senate Finance Committee this morning.

Granholm told some insiders Tuesday that under her plan, 111,000 small businesses would pay less and about 30,000 would pay more.

Businesses with gross receipts less than $350,000 would continue to be exempted from the state business tax under Granholm's proposal.

http://www.freep.com/apps/pbcs.dll/article?AID=/20061129/NEWS06/611290396/0/FEATURES01

BTW, gotta give Jen credit trying to do what Engler couldn't seem to find time to try (though MichGOPs screamed the loudest about the SBT).

[maddogesq]

1. They must be outsourcing their writing to Faux. :)

That headline was so damn misleading. Gov. Pretty Eyes has a plan, yet they have to put up that BS of a headline.

This appears to be more a tax on profits rather than revenues. This will finally get after the insurance industry in this state...and you all know how I feel about them.

[noonwitch]

2. And the insurance industry will pass that cost on to us

Since we are mandated to have insurance on our cars, our rates are going to go up even more. Same for homeowners. But, hey, now Dick DeVos will get to pay even less taxes on the money he makes off of slave labor in China, so I guess all is fair.

I don't blame the governor for this-the GOP legislature decided to do away with the SBT without a plan to replace the money.