LANSING – A business profits tax should be considered as part of an overall tax restructuring for the state, a spokesperson for Gov. Jennifer Granholm said Tuesday, a day after Lt. Governor John Cherry Jr. called for such a proposal.
Liz Boyd, Granholm’s spokesperson, said a business profits tax “could be very positive depending on how it is structured.” But she did not endorse the concept outright.
Speaking to the Lapeer Economic Club on Monday, Cherry said “paranoid schizophrenics” could have designed the state’s current business tax. The Michigan Business Tax was instituted in 2007 and replaced the Single Business Tax.
He said a business tax based on the business’s ability to pay could be fairer for companies across the state and help attract business.
Beyond that, Cherry did not go into specifics of what such a tax to replace the MBT should look like. But he did say discussion on the issue along with other tax proposals needed to conducted.
Boyd said other states rely heavily on business income taxes. And she said the administration has been committed to making the state a more attractive place for business while assuring that services are met since taking office.
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