Last week, legislation was introduced to provide relief by cutting taxes for owners of small to medium-sized businesses and keeping Michigan’s business tax rate competitive with other states.
In a time when so many businesses are struggling to keep their doors open due to the COVID-19 pandemic, it is important we do everything we can legislatively to assist them.
Senate Bill 392 would provide income tax relief for businesses by lowering the current tax rate of 6% to 4.9% by 2022. This legislation would help keep Michigan competitive with many states in our area and across the country who have already lowered their tax rates. Kentucky’s tax rate is currently 5%, and Indiana previously lowered their rate to 5.25%, and by July 1, 2021, their tax rate will decrease again to 4.9%.
SB 392 is part of a larger effort by Senate Republicans to provide tax relief for families and businesses. SB 393 would also provide property tax relief for businesses, and SB 378 would increase the qualified child tax credit for families.
These tax cuts would provide relief for families and businesses in a way that can help everyone who is struggling due to no fault of their own. Lower taxes for businesses will provide relief as well as create more competition, which will help increase the wages and benefits of workers across the state.
All three bills have been referred to the Senate Committee on Finance for further consideration.