Wednesday, June 13, 2007

BREAKING: Senate, House agree to new business tax

Wow. After Bishop's statements to the Freep, I thought for sure this would drag on to the last minute.

Negotiators for the state House and Senate have agreed on a new business tax plan, a key senator announced this morning.

Sen. Nancy Cassis, R-Novi, told the Senate the tentative deal would blend competing plans from the House and Senate. Without revealing details, Cassis said the plan would give domestic auto companies significant tax relief, help small businesses create jobs, and create a more fair and equitable business tax overall.

Good to hear. I'll stop making fun of you now.

About this, anyway.

How are those budget talks coming along?

The AP has a different take on this- let's hope Nancy wasn't just shooting off her mouth. Which she frequently does.

Sen. Nancy Cassis, a Republican from Novi and member of a workgroup that has been negotiating a compromise replacement tax, announced on the Senate floor: "Legislators from both chambers agreed in concept to the structure of Michigan's business tax. Thank you to everyone involved."

One GOP senator clapped, but leaders' staff stressed another meeting was expected Wednesday afternoon and talks were continuing.

And in the time I took to post this- the Freep changed the story and title. Bang, just like that- we get this instead (at original link above)-

But Senate Majority Leader Mike Bishop, R-Rochester, cautioned that a final agreement may hinge today on data that shows how the plan would affect various groups of businesses.

Whatever happens, there is also this to consider. From WOOD-

Even if legislative leaders and Granholm's administration sign off on the tentative replacement deal, lawmakers in both the House and Senate must approve it. Votes could come as early as next week.

Yes, of course they will. ;-)

This time, please let it be true.

UPDATE 12:13PM: The News now says it's a done (tentative) deal-

LANSING -- Leaders have struck a tentative deal to replace the state's expiring business tax that raises the same $1.9 billion as the current tax, cuts levies on equipment by two-thirds and provides tax relief to three-quarters of businesses in Michigan, according to sources familiar with the accord.

The tax will be based on a company's profits and gross receipts proposed by the Republican-controlled Senate and maintains research and development and investment credits put forth by the Democratic-controlled House.

For the record, Christoff at the Freep broke this first and then backed off, Hornbeck at the News went for the sure bet even after everyone else reported their caveats. Since the News has some sort of hotline to the Republican leadership, and the Pubs would be the ones doing any obstructing, I'll go with Hornbeck's story and say we are good to go...

UPDATE 2- 6:15PM: Now we can say it-


The agreement would replace all of the roughly $1.9 billion a year now raised by the Single Business Tax, which expires at the end of this year. The revenue neutrality of the plan is considered important to help Michigan tread water during its ongoing state government budget crisis.

Video of a smiling governor here.

Two down, one to go...