Governor Snyder has said he wants to do away with the complex, "job-killing" Michigan Business Tax, and replace it with a more simplified flat tax for businesses in the state.
The Detroit News has revealed details of that plan through a copy of a draft bill for a 6% corporate income tax. The News' analysis says it calls for:
- A 6 percent tax imposed on the income of companies with shareholders
- the tax would not be applied to LLCs (limited liability corporations) or sole proprietorships
- A tax credit for some small corporations with gross receipts of less than $20 million or adjusted business income that does not exceed $1.3 million.
The News sought reactions from business leaders in the state, and while many said they're still going through the details, they did offer up some opinions.
The Chamber of Commerce had a "fairly positive" reaction to the draft bill.
The Michigan Manufacturers Association told the News that it was...
"very encouraged that the Snyder administration is working aggressively to make Michigan more competitive," but concerned the new tax could result in "a tax increase for a large portion of our membership."
And the Small Business Association told the News, "We're open to the concept," and, "We're studying the details."
