Pavlov votes to end MBT

LANSING—The state Senate passed Gov. Rick Snyder’s historic tax reform plan Thursday, providing $1.7 billion in tax relief and a stimulus for job growth.

The sweeping changes establish a simpler, more equitable tax system and end the job-killing Michigan Business Tax. The state and local tax burden for business is currently a dismal 30th in the nation. Under the new system, this ranking improves to 16th.

Following passage of the plan, Sen. Phil Pavlov, R-St. Clair Township, offered the following comments:

“This is a positive reset for Michigan that positions us for growth. We now have a clear, fair tax system as opposed to the old one that was difficult to understand and double taxed many businesses. We’re going to see Michigan move forward again.

“A key part of ending the MBT was providing tax relief to our small businesses—companies with 100 or fewer employees, which are the ones that create 80 percent of all our jobs and must play a major part in our economic turnaround.

“Michigan lost an astounding 700,000 jobs over the last decade, due in large part to a tax and business climate that severely handicapped job providers. This legislation finally gives Michigan a highly competitive tax structure that will gain national recognition.”