LANSING ? Michigan House Speaker Craig DeRoche (R-Novi) and Senate Majority Leader Ken Sikkema (R-Wyoming) have officially started the countdown to the repeal of the state’s Single Business Tax, setting a vote on the initiative issue for Aug. 9, a day after the state primary election.
In the meantime, Democrats in both chambers are working with the governor’s office to figure out a strategy to their vote. A Democratic source in the House, who did not wish to be identified, told Gongwer News Service that House Minority Leader Dianne Byrum (D-Onondaga) might request that every member of her caucus vote against the proposal should Republicans not put up a replacement to the tax at the same time.
When a bill posing the same repeal date was before the chamber in March, seven of the 49 Democratic House members voted in support of the repeal. Those joining majority Republicans in support were members who represent competitive districts in the fall elections.
Byrum abstained from the vote at that time, however she later submitted her opposition vote to the House clerk.
In a statement to Gongwer on the SBT vote, Byrum said: “We will be discussing strategy regarding the Single Business Tax repeal with leadership and the caucus next week.”
When asked to reply to the rumor that she will request all ‘no’ votes from her members, Gongwer was redirected to her first quote.
A top Democratic official in the Senate said the party was still developing its strategy on how to respond to the SBT measure.
And Tom Lenard, a spokesperson for the Senate Democrats, said the main worry Democrats have over the proposal is that there is no replacement proposed for the tax once it ends.
Republicans have said that a joint legislative committee has been charged with coming up with a replacement to the SBT and that those proposals should roll out in December.
In a statement released Tuesday, Sikkema said the Legislature has been “nibbling around the edges of this burdensome tax for years and the time has come for fundamental change.”
“It’s very clear that the only way to restructure business taxes in Michigan is to eliminate the SBT and create a pro-growth replacement that will help our economy instead of constantly getting in the way,” he said.
The legislative initiative was jumpstarted by Oakland County Executive L. Brooks Patterson earlier this year. Governor Jennifer Granholm then vetoed a bill that have also repealed the SBT on December 31, 200, but she has since called on the Legislature to repeal the SBT as of the end of 2006.
“This is a signal to Michigan taxpayers and workers that the GOP wants to reform how our state operates,” DeRoche said. “With the SBT out of the way, the important work can begin to find a better, fairer and job-friendly business tax for Michigan, the important reform we need to turn our economy around.”
Patterson thanked Sikkema and DeRoche, saying, “their bold action will eliminate the worst business tax in America and start Michigan on the long overdue road to economic recovery.”
Business groups also have begun a countdown to the vote. Charlie Owens, state director for the National Independent Business/Michigan, said: “Repealing the much-despised SBT has been a dream for our members since the day the tax was adopted almost 30 years ago. Although we are entering a very uncertain and dangerous time in the debate over business taxation, particularly in light of the replacement tax debate, we would be remiss if we did not take a moment to contemplate the significance of this event and celebrate the end of ‘the worst business tax in America.’ ?
Both chambers are scheduled to meet at 10 a.m. Wednesday.
A special joint committee has begun to hear about proposals to replace the tax, and Sikkema has said he wants to see a replacement enacted in December.
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