Read more: Local, Economy, Politics, Taxes, Lansing, Lawmakers, Senate, House, Michigan Business Tax, Surcharge, Jake's Old City Grill, Saginaw
SAGINAW -- “From a tax perspective it’s tough,” said Paul Barrera, owner of Jake’s Old City Grill on Hamilton Street in Old Town Saginaw. He evaluated doing business in Michigan’s current economic climate, amid fears of tax restructuring for the new year, to bring in millions of dollars.
Some call it a critical effort to raise vital cash to keep essential state services running, but many lawmakers call tax restructuring a long-term requirement as the structure of Michigan’s economy changes, moving away from dependency on the auto industry.
If taxes go up, Barrera said he may have to cut the most controllable expense- staffing. “When that happens there are less people earning; less people spending,” he said.
Legislators have a few ideas like reducing the sales tax from 6 percent to 5.5 percent; however services would be taxed at the new rate. Another idea is eliminating the 22 percent surcharge on the Michigan Business Tax. That idea is fancied by Democratic State Senator John Gleason of Flushing.
“When you single out the job creators, that is not the best atmosphere to create jobs in,” the senator said.
Republican State Senator Roger Kahn of Saginaw Township is also opposed to the MBT surcharge. Kahn is interested in lower costs on businesses and providing job-creating incentives through tax credits.
Paul Barrera had his ideas too.
“Get rid of the bureaucracies that create penalties for working hard,” he said.
