SOUTHFIELD ? Most owners of small and medium-sized business in Southeast Michigan are confused about the impact of proposed changes to the Michigan Single Business Tax, but service-oriented businesses are willing to take a tax hit short-term to help boost the state?s manufacturing base, shows a new study by Raymond & Prokop.

In a poll of more than 600 small and medium-sized business owners in southeast Michigan, the non-partisan poll done by EPIC-MRA of Lansing found that not only are businesses more concerned about the economy than its taxes, but also are confused about what impact any overhaul of the state’s SBT will have on their operations.

Key findings of the survey included:

The economy (20 percent) more than any other factor is the top concern for businesses in southeast Michigan, followed by customers (19 percent), increased costs (11 percent) and taxes (9 percent).

More than half (55 percent) felt the SBT proposals will have a significant effect on keeping jobs in Michigan that might otherwise be lost.

Nearly 50 percent believed that SBT reduction of taxes on manufacturers and small business and increases to insurance companies, banks and other service oriented businesses is NOT in the best “long-term” interest of Michigan, while 34 percent believed it WOULD be in the best long-term interest of the state.

Nearly 70 percent don’t think the current tax has any impact on their business.

Almost 80 percent were “a little” or “not familiar” with Governor Granholm’s proposed changes.

Nearly 50 percent more respondents favored the SBT changes after being read what was being proposed than those who were answered the question based on what they had heard through news reports only.

“It was obvious from the responses that a majority of businesses in southeast Michigan do not understand the specifics of the Governor’s reform proposal. Not only don’t they understand the changes being proposed, we believe many businesses don’t understand the SBT in its current form either,” said Raymond and Prokop partner Wayne Roberts of the firm’s State and Local Tax Group. “It was also obvious to us that businesses believe there is a direct correlation between tax cuts and jobs and the professional services firms are willing to make that sacrifice.”

The complete survey results can be viewed at RayPro.Com