LANSING – A day after Senate Republicans tried to advance a budget-slashing plan that would eliminate hundreds of jobs and gut funding to public safety and schools, House Democrats on Monday introduced a key budget proposal to save the state $500 million by ending tax loopholes. The plan is part of House Democrats' comprehensive strategy to resolve the state's unprecedented fiscal crisis through cuts, reforms and revenues.
"This plan to eliminate tax loopholes that benefit corporations and special interests is a key part of a lasting solution to turning Michigan's economy around," said State Representative Andy Meisner (D-Ferndale). "It's time to end the tax breaks that enrich corporations at the expense of individual taxpayers. The dollars we save will be used to prevent the kinds of devastating cuts proposed by the Republican-led Senate – cuts that would restrict our ability to provide our citizens with health care, public safety and quality schools."
The plan will save taxpayers $500 million annually.
"This plan will move Michigan forward," said Majority Floor Leader Steve Tobocman (D-Detroit). "By closing corporate
tax loopholes that have unfairly shifted the tax burden onto Michigan's families, we are protecting our communities and
getting Michigan back on the road to economic recovery."
Currently in Michigan, telecom companies receive tax breaks that add up to about $37 million a year. Michigan gives a break to oil and gas companies that amounts to $3.9 million annually. Tobacco wholesalers are allowed to write off their bad debts to the tune of $800,000 each year.
"Some of the tax exemptions that are on the books were created with the right public policy goals in mind, such as jumpstarting our state's economy," said Fred Miller (D-Mount Clemens). "But many loopholes are outdated and no longer serve their original purpose. Now, more than ever, Michigan needs to eliminate the tax loopholes that help a small, elite group of special interests at the expense of our families."