LANSING – Gov. Jennifer Granholm demanded the Michigan Legislature close tax loopholes as part of any package to cut taxes for small businesses.
Asked to respond to GOP criticism that it was ironic she was asking for federal assistance to manufacturers after just vetoing additional tax cuts, Ms. Granholm said: “I find an incredible amount of irony in the Legislature passing tax cuts that are unfunded when we are over $5 billion below the Headlee limitation already and I just signed a $600 million tax cut for manufacturers. To suggest we’re not doing all we can is just ridiculous.”
“I will be happy to sign a small biz tax cut that’s funded,” she said. “He (Senate Majority Leader Ken Sikkema) promised to close loopholes to do it; he has not.”
Sikkema spokesperson Ari Adler blamed the governor for the dearth of closed tax loopholes, saying the Legislature last year did include tax loophole closings in bills sent to Granholm only to see her veto them. The loophole closings were included in the overall tax cut package that Granholm vetoed as she said it did not follow a negotiated agreement and because new loopholes were created.
“We may revisit true loopholes again, but this idea that we have not closed loopholes is erroneous,” Adler said. But he also said it is a tough vote because of the increases it means for some taxpayers and because of lingering hard feelings over the veto.
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