Tagged: tax breaks

There is something to be said for one party controlling both the executive and legislative branches of government. This year, for the second year in a row, the state budget will apparently be passed by the beginning of June. That’s a big change from a few years ago.

Twice during the Granholm years, the parties were still squabbling over the books when the fiscal year expired at the end of September. And bad last-minute choices were made.

 It appears a budget deal between Governor Rick Snyder and the Legislature’s Republican leaders could include an election year tax cut. An early version of the proposal would accelerate a drop in the state income tax rate and increase the personal exemption.

The governor and G-O-P leaders want to wrap up the budget by the end of next week.

 Governor Snyder says he was skeptical at first, but he says revenue projections look promising enough to at least start talking about a tax cut for individuals and families.

Democrats in Lansing have outlined a package to help small businesses grow and hire unemployed people.

The plan includes taking a portion of the money that’s in a state trust fund and investing it in local banks and credit unions to make small business loans.

State Representative Vicki Barnett said that will help small businesses having trouble getting credit from larger banks and investment funds.

“We know that a very teeny investment can have huge dividends in terms of job creation and access to capital,” said Barnett.

“There is no other state that I know of that is taking this approach to aggressive investment – doing things they already do with taxpayer money and targeting it to grow jobs in their own state,”she added. 

The Democratic package would also allow small banks and credit unions to pool their finances to invest in larger projects.

Barnett says that would make larger loans possible while allowing the institutions to share the risk.

The plan also calls for a tax credit for small businesses that hire long-term unemployed people and veterans.

Republicans shy away from job creation credits. They say the state should not single out specific businesses for tax breaks.

Together the projects will generate up to $602 million in new investments and create close to 2,000 new jobs.

By far the biggest project approved by the board this month is in Charlotte. Spartan Motors Chassis designs and manufactures a variety of special products for vehicles. They’re expected to add 450 new jobs along with an expanded facility.

George Bosnjak manages business development at The Right Place. It’s an economic development group in West Michigan. He helped two companies expanding in Grand Rapids get the tax breaks. Atomic Object LLC will expand its current location over a site in California. They expect to launch two new programs that’ll add 30 high tech software design jobs. Knape & Vogt Manufacturing Company makes all kinds of storage related components in Grand Rapids. They purchased a company in Illinois and will move production to Michigan, creating more than 120 new jobs.  

Bosnjak is optimistic about industry growth in West Michigan.

 “We really see a positive trend across all sectors, certainly nothing where it’ll turn around and change what’s happened over the last three years overnight but I feel that our economy and companies here are certainly moving in the right direction.”

However, Governor Rick Snyder is proposing to eliminate these and many other tax breaks. Bosnjak says they’re playing it by ear.

“I don’t think anyone really knows exactly what the programs will be and what the changes will be and how it’ll affect companies. But we’ll certainly deal with the tools that we have and make the best and do the best job that we can.

Snyder says the incentives inherently pick winners and losers when he says the state needs to create a simple and fair tax structure so all businesses are on an even playing field.