Tagged: business

Every Thursday we take a look at Michigan politics with Susan Demas, political analyst for Michigan Information and Research Service, and Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants.

There’s an eight-bill package working its way through the legislature right now aimed at eliminating the personal property tax. This sounds like something that would affect individuals but this is actually a business tax.

Sikkema says, “This is basically a tax on business equipment, computer, office furniture and manufacturing equipment. It’s generally acknowledged to be a bad tax because it taxes new business purchases and business growth and investment.”

Demas indicates that some cities receive up to 40% of their tax base from the personal property tax. However, not all cities would be affected in the same way. Some cities wouldn’t be affected at all.

“The municipalities have been looking for ways that they can get some of that revenue replaced, but so far they haven’t had a lot of takers because their solution is a constitutional amendment that would guarantee the same money, and nobody really wants to tie the legislature’s hands with that," she says.

Sikkema believes eliminating the tax is a good move for Michigan. He says, “Other states, particularly in the Midwest have already eliminated it, principality Ohio. Michigan and Indiana are the only ones in the Great Lakes region that I’m aware of who currently collect the personal property tax.”

But he adds, “It’s not without its down side…for some it is a major source of revenue and republicans are trying to address that with this promise to replace it in the future.”

Demas adds, “I do think we do need to pay attention to however many communities there are that really rely on this and could be pushed over the edge, because certainly it’s not health for our state to have our cities keep getting financial managers.”

Ohio-based Huntington Bank says it plans to open branches in dozens of Meijer stores in Michigan. The bank and the Grand Rapids-based retailer have announced a 10-year partnership.

They say this will add 500 jobs for Huntington Bank in Michigan. The branches will operate with extended hours, giving shoppers time to conduct business on evenings and weekends. Huntington has partnered with another Grand Rapids based company, Steelcase, to design the branches.

There’s an old Russian saying that, even, if you covered the world with asphalt, eventually a crack would form.

And in that crack, grass would grow. I was reminded of that yesterday by an Italian businessman my age, a man who is betting on green shoots coming through a town caked with many layers of asphalt. His name is Sergio Marchionne, and he is the CEO of a company called Fiat. Three years ago, he did something many at the time thought stupid. He took over a dying bankrupt company.

U.S. Senator Debbie Stabenow will introduce a bill next week to prevent companies from getting tax write-offs for moving overseas.

Currently businesses can write off moving expenses on their taxes if they’re moving within or out of the country.  But no such break exists for businesses moving into the U.S.

“That makes absolutely no sense,” Stabenow said at a press conference Monday at Grand Valley State University.