LANSING – A day after Senate Republican leaders tried to advance a budget-slashing plan that would eliminate hundreds of jobs and gut funding to public safety and schools, the House on Monday introduced a key budget proposal to save the state $500 million a year by ending corporate tax loopholes. The plan is part of the House comprehensive strategy to resolve the state's unprecedented fiscal crisis through cuts, reforms and revenues.
"Corporations and special interest groups shouldn't be enjoying big tax breaks at a time when so many working families are struggling to make ends meet," said State Representative Richard E. Hammel (D-Mt. Morris Township). "Closing these tax loopholes will free up $500 million a year of taxpayer money that can be used to prevent devastating cuts to our schools, our police and fire departments, and other essential services in Genesee County and across the state."
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.
"Eliminating tax loopholes that benefit elite groups will help get Michigan's economy moving in the right direction," said State Representative Lee Gonzales (D-Flint Township). "Many of these tax breaks are outdated and now serve only to shift the tax burden from giant corporations to our working families. Fixing this problem will go a long way toward protecting our communities and creating a long-term solution to Michigan's budget challenges."