Business groups urge lawmakers to hold line on taxes

Michigan’s business community on Friday called on lawmakers and Gov. Jennifer Granholm to “hold the line” on tax increases and pass the cuts-dominated budget agreed to by House Speaker Andy Dillon and Senate Majority Leader Mike Bishop.

The letter from 16 major business groups came amid continued rumblings of new revenue being considered to soften major cuts that have proved difficult to achieve as lawmakers close in on the Oct. 1 start of the fiscal year with no budget in place.

“With a 15 percent unemployment rate, Michigan’s business is already unstable and uncertain,” the groups wrote. “We stand unified in our opposition to any tax increase on job providers.

“The business community has engaged in the process of making structural reform a priority, encouraging conversation among legislators and offering menus of possible reforms and has expected as much for two years,” the letter said.

“It is a drastic mistake to raise taxes and make Michigan less competitive when even the simplest reforms have not been considered.”

The groups include: the Michigan Chamber of Commerce, Detroit Regional Chamber, Grand Rapids Area Chamber of Commerce, Lansing Regional Chamber, Associated Builders and Contractors of Michigan, Kalamazoo Regional Chamber, Michigan Association of Home Builders, Michigan Manufacturers Association, Michigan Association of Realtors, Michigan Restaurant Association, National Federation of Independent Business-Michigan, Business Leaders for Michigan, Small Business Association of Michigan, Michigan Grocers Association, Michigan Retailers Association and Michigan Bankers Association.

The groups also cited concern about the passage of a continuation budget that does not include the cuts targeted by Dillon, D-Redford Township, and Bishop, R-Rochester.

Senate Republicans on Friday passed continuation budget bills reflecting cuts at the targeted levels, over the objection of Senate Democrats who said the 30 day, cuts-only budget was extreme and would slash funding for education, public safety and health care.

Written By: Amy Lane of Crain's Detroit Business

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