Mich. Republicans eye tax credits, business taxes

[The Northerner]

LANSING, Mich. (AP) — Michigan House Republicans said Thursday they plan to eliminate or cap some tax credits and revamp the state's business tax structure as state government tries to climb out of a projected $1.8 billion budget hole for the upcoming fiscal year.

Republicans proposed eliminating the earned income tax credit for lower income residents, a move they say could save nearly $340 million in the fiscal year that starts in October. Tax credits related to movie production, brownfield redevelopment and a slew of other business activity could be capped or eliminated as the House works on its budget plans.

"We will review all tax credits to see what works, what doesn't, what's appropriate and what's not," said House Speaker Jase Bolger, a Republican from Marshall.

Scaling back tax credits could save money to help offset the proposed elimination of a 22 percent surcharge on the state's main business tax. The additional charge connected to the Michigan Business Tax is expected to raise roughly $500 million this fiscal year.

A bill to eliminate the business tax surcharge was the first legislation introduced in the House for the 2011-12 session, which began this week. Proposals aimed at reining in welfare and prison costs will follow.

Republicans hold an advantage over Democrats in both the House and Senate. The GOP's legislative leaders have not yet reached agreement with new Republican Gov. Rick Snyder on exactly how to revamp the state's business tax structure. But Republicans are in general agreement that a revised tax structure should be simpler, lower and perhaps broader than the current system.

Read more: http://www.bloomberg.com/news/2011-01-14/mich-republicans-eye-tax-credits-business-taxes.html

[spanone]

1. when do republicans eliminate all taxes? then we can have bake sales to fund our roads

[louis-t]

2. Republicans will destroy this state.

The new repug governor has said he will get rid of the movie industry in this state. Never mind the thousands of people who will lose jobs here. A guy I know was ready to walk away from his house until he got a job in the movie industry here. When Gov. Granholm took over, she was hit with a $4 billion deficit by the former repug gov. She leaves a $1.6 bil. deficit to Snyder. I guarantee he will leave a much higher deficit when he leaves. Repug idiots step over dimes to pick up nickels.

[svsuman23]

3. as a Michigander, fix this economy!!!