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May 20, 2005Granholm's plan will hurt business
Opposing View:
BY NORMAN G. CAMPBELLSBT shift is the right thing to do By Todd M. Bennington Michigan currently has a problem maintaining and attracting jobs. No one knows this better than the thousands of businesses struggling to survive in our state's persistently difficult economic climate. Elected officials are right to recognize the urgency of the situation and act swiftly to correct it, but the tax shift plan proposed by Governor Granholm misses the mark. The governor's well-intentioned plan shifts the burden of the state's business taxes - more than $800 million per year - onto the small businesses that can least afford it. While state officials have been excruciatingly slow in providing details, what has been announced would result in a tax cut for manufacturers and a tax increase on thousands of other businesses that are providing good paying jobs and investment in our local communities. A host of industries have voiced their opposition to the plan as it stands. Individuals representing grocery stores, home builders, insurance companies and the financial service industry are among those who have spoken out at hearings in Lansing and meetings all across the state about the disastrous effect this tax shift would have on their ability to provide jobs and quality, affordable products and services to their customers. Michigan community banks provide more than $130 billion in local investment in Michigan's economy. We provide loans to hundreds of small businesses so they can invest, expand and grow. If this plan were to take effect, banks would pay considerably more in business taxes, vastly reducing the amount of funds we can make available to the small businesses that rely on them to keep their doors open and workers employed. Every business owner I know wants to help Michigan's manufacturers remain a powerful engine driving Michigan's economy. But the business tax shift proposal put forth by the governor is a penny-wise-and-pound-foolish approach to addressing Michigan's faltering economy. No studies have been produced that guarantee that any jobs will be produced - or saved - by this plan. In fact, the plan does guarantee that the businesses that have been creating jobs will pay substantially more in taxes and therefore have drastically less capital to offer clients and employees. That is certainly not the way to achieve a strong, vibrant economy for Michigan. We urge legislators to reject this approach and develop one that will allow all industries to help revive our state's economic health. Norman G. Campbell is the President and CEO of Central State Bank in Beulah.
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