LANSING, Mich (WLNS) – A tax break for millionaire business owners and others is receiving bi-partisan support in the Michigan House while a plan to cut back the income tax rate for families remains on hold.
Recently the Republican chair of the House Taxation Committee said it would be tough to pass a tax break for wealthy business persons without giving a tax break to the little guy first.
But now Rep. Tedder has flip-flopped.
His committee sent to the House floor what they are calling the Brownfields redevelopment bill whereby businesses can get a tax break from the state if they clean up abandoned contaminated land for new projects.
Mr.Tedder explains why he is moving on this, while the family income tax cut remains in limbo.
“I would part ways on that sentiment and here’s why: Number one, nobody is investing in these brownfields,” insists Rep Tedder.
You might expect Democrats to oppose this but many are not.
East Lansing lawmaker Rep. Sam Singh says the governor made a mistake by eliminating these business tax breaks and now lawmakers are correcting that error.
“We’re going to fix one of the wrongs that the governor made in 2011 by this way of targeted tax credits that will help those developments,” explains Rep. Singh. “And that’s going to help cities all through the state.”
The governor says an individual tax cut now is “not viable and a challenge” but he embraces the business tax cut.
As does Lansing mayoral candidate and current State Representative Andy Schor.
“I don’t think the little guy is getting zippo,” says Rep. Schor. “I think that creating jobs and creating investments is going to help the little guy who is going to get jobs as opposed to the five dollars that they’re going to get in an income tax cut.”
The House could approve the business tax reduction this week while the tax cut for you remains a question mark.