Next Step To Competitiveness: PPT Reform

During times like these, we need to be doing all we can to encourage investment.  But Michigan's Personal Property Tax (PPT) does the opposite.  By taxing investment in machinery, equipment and technology that could help create jobs and grow businesses, it discourages those investments in Michigan.  

The biggest issue to eliminating the PPT is that it is a significant revenue source for some communities.  But we believe there are ways to minimize adverse impacts by phasing out the tax, allowing communities to raise replacement revenues or having the state fund the difference.  

Some also argue that further tax reform isn't necessary to make Michigan competitive after the state business tax was reformed earlier this year.  But those changes are projected to improve Michigan's overall business tax climate  to about 22nd among the 50 states.  If we want to be a "top ten" state for job and economic growth, having an "average" business tax climate isn't likely to help us achieve that goal.

The PPT is a tax on investment, and Michigan should be doing everything it can to encourage investment during these challenging times, not discourage it.

Michigan Metros Strong In Recovery, Weak In Overall Performance

The most recent Brookings study of the 100 largest U.S. metro areas performance before and after the recession shows that Detroit was among the 20 weakest overall, but 40 strongest in recovery.  Grand Rapids was among the 40 weakest overall, but 20 strongest in recovery.

The Public Approves of Governor, Lawmaker Actions

Voters Also Support Personal Property Tax Repeal 

DETROIT, Mich., September 13, 2011 — Business Leaders for Michigan (BLM), the state’s business roundtable, today announced that a recent survey showed that a majority of Michigan voters believe the Governor and Legislature are moving the state in the right direction. Further, most Michigan voters believe it is necessary to eliminate the outmoded personal property tax on business, in order to keep growing jobs here.

Click to read more ...

Legislature Passes Sensible Benefit Reform

Check off another Turnaround Plan objective as being accomplished – requiring school & local government employees to pay 20% towards their health care benefits.  Beginning January of 2012, public employers are required to cap the employer share of employee health care costs at $5,500 per individual, $11,000 per individual and spouse, and $15,000 per family.  Alternatively, it allows employers to cap employer share of employee health care coverage at 80% of total annual costs.  These requirements will apply to state legislators, local government, and public school employers.  Collective bargaining agreements currently in place would remain unaffected, but the new requirements would apply upon expiration.  

This is sensible reform.  Most public school employees pay 0-10% towards their health benefits and many local government workers pay less than Michigan state employees who pay about 17% and private sector workers who pay at least 20%.  The legislation allows time to notify employees of the changes, reflects differences in health plan design and respects collective bargaining agreements already in place.  

Public sector workers deserve to be paid fairly for the good work they do.  These reforms were fair for taxpayers and government workers alike.   

March 15, 2012: Michigan CEOs to gather, discuss Michigan’s future

Business Leaders for Michigan to host first-of-its-kind Michigan CEO Summit in 2012

Business Leaders for Michigan (BLM), the state’s business roundtable, today announced plans to host a Michigan CEO Summit on March 15, 2012 at the Westin Book Cadillac Hotel in Detroit.

Download Press Release