LANSING – Republican legislative leaders have called on the House to return to session to pass legislation that would repeal the surcharge on the Michigan Business Tax.

But House Speaker Andy Dillon (D-Redford Twp.) said it would be irresponsible to act on state taxes on a piecemeal basis, but the chamber should deal with a variety of tax issues. He also said that he has begun discussions with a number of groups and individuals, including Governor Jennifer Granholm and Senate Majority Leader Mike Bishop (R-Rochester) on a more comprehensive solution.

Bishop, joined by House Minority Leader Craig DeRoche (R-Novi) and much of the combined Republican caucuses from the House and Senate, said at a press conference that the best chance for the House to pass SB 1242 is before the election.

Had the Senate moved the measure earlier, the House would have done nothing, he said. Waiting for action during the lame duck session would be equally fruitless, he said, adding that the Senate was not even sure it would return for a lame duck session.

After the press conference, one Republican senator said the proof that the measure could pass the House now but not later is that Senate Minority Leader Mark Schauer (D-Battle Creek) voted for SB 1242, which might not have happened had Mr. Schauer not been running for the U.S. House in the 7th District.

Acting on the bill now means “putting public policy before politics,” Bishop said.<;p>

If the House did pass the bill it would have a “profound” impact on the state, he said.

He called the measure, which would repeal the surcharge on the MBT (which was added a year ago to replace a sales tax on some services the Legislature adopted as part of the budget solution to the 2007-08 fiscal year) over three years, a “common sense” bill that would help reduce the size of government and eliminate the “overly oppressive and aggressive” surcharge.

DeRoche said this was a critical month for businesses and if the Legislature takes steps to remove the surcharge it could help stall some companies that might lay off workers before the holidays in order to help pay their state tax bill.

Tricia Kinley, tax director for the Michigan Chamber of Commerce, said it was the top priority of her members to repeal the surcharge.

“We are urging the Michigan House to take a break from campaigning, check their politics at the door and pass these bills,” she said.

Following the press conference, Dillon issued a press release saying that he supported repealing the surcharge but that “it must be done as part of a comprehensive solution that reforms our tax system to make it fair for businesses and families across the state. It would not only be irresponsible to make piecemeal changes, but it would deny businesses and homeowners real tax relief.”

Dillon also blamed Republican inaction a year ago for forcing implementation of the surcharge and said a bipartisan solution has to be found “that will improve our economy and move Michigan forward.”

Along with Bishop and Granholm, Dillon said he is also talking with Detroit Renaissance and the Center for Michigan about possible tax ideas.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

a>>