This week the Michigan Senate passed the Business and Economic Stimulus Tax (BEST) plan to replace the outgoing state Single Business Tax. For most ABC members, this plan is by far the best of the plans being considered by the legislature to restructure the business tax system in Michigan. When it comes to your bottom line, this plan goes the furthest to reduce the tax burden for the construction industry more than the other plans being considered.
As ABC continues to fight for lower taxes, a "Floor Letter" from ABC of Michigan Executive Director Chris Fisher was circulated to each Senator during session. The letter read in part: "For our statewide membership, the Senate BEST plan is by far the most equitable and fair of the SBT replacement proposals being considered by the Legislature. A significant cross section of our membership has run the numbers and discussed the provisions of the various plans with their CPA's. In doing so the overwhelming conclusion is that the BEST plan provides the greatest amount of tax relief to our membership. This plan is clearly the best plan to assist the struggling construction industry in Michigan."
An amendment supported by ABC of Michigan passed the Michigan Senate with bi-partisan support to further reduce the tax burden for ABC members as well as encourage training and education programs to address the growing need of a well trained construction workforce in Michigan.
Special thanks should be extended to Senator ROGER KAHN from Saginaw Township for sponsoring the amendment which allows businesses to claim up to $4000 for each qualified apprentice. This is obviously a construction industry specific amendment that ABC of Michigan members will be able to utilize. The amendment passed with bi-partisan support.
On April 18, 2007, ABC of Michigan joined with Americans for Prosperity, the Michigan Taxpayers Alliance, the Small Business Association of Michigan, the American Family Business Association, the Michigan Association of REALTORS, the Wayne County Taxpayers Association, the Kalamazoo Taxpayers Association, the Michigan Fair Tax Alliance and many others from around the state to voice our opposition to various proposed tax increases being pushed by organized labor, Governor Granholm and various other politicians.
Taxpayers from around the state took a cold April day off work and drove to Lansing to tell Governor Granholm and state lawmakers, "Enough is enough, No new taxes! Cut spending!" An array of speakers kept the crowd motivated, including Stephen Moore an editor for The Wall Street Journal and Dick Patten from the American Family Business Institute, the leading national organization fighting the 'death (estate) tax'.
Associated Builders and Contractors of Michigan responded to calls by various groups and lawmakers for a hike in the gasoline tax by nine cents a gallon by indicated that without labor reforms lawmakers can count small business out for support of a gas tax hike.
ABC of Michigan urged a repeal of Michigan's Prevailing Wage laws and their inflationary effect on road construction costs before taking up a debate on gasoline and diesel taxes. Currently Michigan's Prevailing Wage Law results in taxpayers being forced to overpay to build roads and many small businesses and their employees are excluded from the opportunity to participate in these projects. During the debate Gongwer News Service reported the following:
"Chris Fisher, Executive Director of ABC of Michigan, argued the wage law mandating contractors pay union scale wages for construction projects that are financed or sponsored by the state acts as a "super minimum wage," setting wages much higher than local construction wages determined by competition in the free market."
Policies that allow for a bid discount process based on giving preferential treatment based on race, sex, color ethnicity or national origin is unconstitutional, according to an OPINION released by Attorney General Mike Cox.
Cox said that such policies violate a new addition to the state constitution that was put into place after the November 2006 election when voters passed the Michigan Civil Rights Initiative to get rid of all affirmative action hiring practices in government and education.
State Rep. Fulton Sheen (R-Plainwell) asked for the opinion in relation to a policy adopted by the city of Grand Rapids. To link to the official Attorney General's Opinion, CLICK HERE.
Be sure to mark your calendar for the primer political and legislative event of the year! The annual ABC Legislative Conference is June 12 - 14 in Washington, DC and you're invited.
While visiting our nation's capitol, you'll hear from "insiders" about how the actions of Congress and the administration will impact your company now and in the future. You will have the opportunity to join with other merit shop contractors to make sure your representatives hear your concerns and desires -- loud and clear. In past years ABC has met with congressmen, senators, and even Presidents Bush and Reagan.
In addition ABC of Michigan members are invited to attend a member only private luncheon with members of Congress from our state. This exclusive event will be on Wednesday June 13, at noon at the Sonoma Wine Bar on Capitol Hill. This special luncheon is underwritten and is at no cost to ABC of Michigan members.
ABC members are encouraged to attend this premier event.
When ABC members in Michigan ban together we have powerful political voice! In Lansing ABC of Michigan lobbies for sound legislation to increase opportunities for our members in the areas of training, safety, business and labor practices on a local, state and national level. ABC also educates our members on the current political front and promotes ever-strengthening grassroots activity of our member by providing tools to educate members and their employees. What goes on in the halls of the Legislature effects your bottom line and ABC is there fighting for you, your business and the Michigan construction industry.