MITA has posted several bulletins in recent weeks on the proposed Michigan Business Tax plan. According to analyses done by a number of members, the current plan would be a dramatic tax increase on those in the heavy construction industry.
MITA has gone to the media to underscore the disastrous effects this would have on job providers in the industry. MITA, along with several other construction organizations, has also been communicating with legislators who have been part of the MBT negotiations. The efforts appear to have been successful so far, as the MBT work group has offered to make changes to the proposal specifically relating to taxation of the construction industry. Their latest behind-the-scenes proposal would create a “50 percent deduction for subcontracts”.
While such a change is helpful, it’s still not enough. The proposed plan would still be significant regressive tax for the construction industry.
The industry needs your help today!
Please contact your state representative and senator and tell them that more changes still need to be made or else the new MBT will be a job killer for the construction industry. In your conversations with legislative offices, do not accept the suggestion that the construction industry problem has been solved.