LANSING – A proposed Single Business Tax cut to help small businesses in Michigan may be unveiled this week by Senate Majority Leader Ken Sikkema (R-Wyoming) and House Speaker Craig DeRoche (R-Novi), sources said.
The sources stressed the timing of when the two would release their proposal is indefinite. The Legislature returns to session at noon, Wednesday.
Details of the proposal were not released, but some sources suspect the leaders will propose changes to the state’s alternative profits tax – that qualifying small businesses can pay instead of the SBT – and increasing the owner income disqualifier from the current $95,000 – that exempts owners with incomes below that level from paying the corporate tax.
Officials of both the National Federation of Independent Businesses – which proposes that disqualifier be raised to $175,000 – and the Small Business Association of Michigan have made changes to the alternative profits tax one of their top priorities.
How much the tax proposal would save businesses was also not available, though one source said it would likely not match the estimated $600 million in savings in the SBT tax changes enacted last month to assist mostly manufacturers.
Last month, Sikkema said he hoped to enact an SBT cut for small businesses.
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