Business leaders react to Detroit mayor's corporate tax proposal
Business leaders in Detroit say they have a little more clarity now on Mayor Dave Bing’s proposal to boost the city’s corporate tax rate.
Bing wants to nearly double the tax – to one-point-nine percent – on C-Corporations. Those are companies that are incorporated. They tend to be larger businesses.
Sandy Baruah is the president of the Detroit Regional Chamber. He says C-Corps also tend to be the businesses that have been doing a lot of recent hiring in Detroit.
"The Quicken Loans, the Strategic Staffing Solutions, the Galax-E Solutions," Baruah says. "So some of our biggest job creators are subject to this new tax, and it makes Detroit less competitive."
But Baruah says his members also know that Detroit needs to get its finances in order. He says Mayor Bing has a plan to make that happen, and businesses are willing to do their part to help.
The Bing administration says the tax hike would raise $6 million next year.