Michigan Small Businesses Lose Out With GOP’s Tax Plan
In 2021, thanks to President Biden’s American Rescue Plan and Governor Whitmer’s strong leadership, Michigan saw a small business boom as the state recovered from the COVID-19 pandemic. Over the course of the year, Michigan saw 150,000 new applications to start businesses and created over 170,000 new local jobs.
While Democrats like President Biden and Governor Whitmer are providing Michigan’s 900,0000 small businesses the resources they need to stay open and retain employees, creating an economy where small businesses can thrive, Republicans are running on a deeply unpopular economic agenda that would raise taxes on over half of the small business owners in the state. And that percentage skyrockets to 82 percent if the small business owner makes less than $50,000 a year.
“Nearly half of Michigan’s workforce is employed by small businesses, so small businesses truly are the backbone of our economy. That’s why it’s so startling to see Republican candidates back a proposal that would raise taxes on over half of Michigan’s small business owners,” said Michigan Democratic Party Chair Lavora Barnes. “While Democrats have created a small business boom, and remain laser focused on ensuring Main Street businesses have what they need to stay open, retain employees, and hire new ones, Republicans continue prioritizing corporations and wealthy donors over workers and small businesses.”
Across the Great Lakes State, small businesses employ thousands of our neighbors, provide our communities food, clothes, and other Michigan-made goods they need, and push our economy forward. Here’s how President Biden and Governor Whitmer are delivering for Michigan small businesses:
- Governor Whitmer announced more than $236 million from President Biden’s American Rescue Plan is headed to Michigan to ensure entrepreneurs have the funds to form their new businesses.
- In Governor Whitmer’s initiative “MI New Economy” she is proposing $500 million in grants for restaurants and small businesses, launched over $400 million to support small businesses through Growing MI Business grants, and signed a Buy Michigan executive directive to increase state procurement and contracts with small and geographically disadvantaged businesses.
- President Biden’s American Rescue Plan delivered $450 billion in emergency relief to small businesses which has helped lay the foundation for unprecedented business and job growth.
Meanwhile, the National Republican Senatorial Committee Chair Rick Scott and other Republicans are backing a plan that would:
- Tax over half of Michigan’s small businesses owners and 82 percent of owners making under $50,000
- Force small business owners in Michigan to pay an additional $800 in taxes each year
- Raise taxes on nearly 40 percent of all working Michiganders including teachers, firefighters, and restaurant workers
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