Steve Cortes, CNN Political Commentator (left) & Matt Maddock, Michigan House Representative (right) | Facebook
Steve Cortes, CNN Political Commentator (left) & Matt Maddock, Michigan House Representative (right) | Facebook
“This is clearly a scheme to raise taxes on Michigan employers at a time when we should be doing everything possible to attract and retain jobs,” Cortes told Pontiac Times. “Breaking long-standing agreements with companies sends the wrong message — that Michigan doesn’t keep its word.”
“It’s not just bad policy, it’s bad for business,” said Cortes.
Maddock voted for a $3.1 billion spending package that would repeal the Michigan Economic Growth Authority (MEGA) tax credits still used by about a dozen major employers, including automakers and advanced manufacturers.
The proposal accomplishes this by increasing the Michigan Business Tax (MBT) rate from 4.95% to 30% — a sixfold spike — effectively forcing those firms off the MBT and into the Corporate Income Tax system.
The legislation — House Bills 4180 through 4187 and 4230 — passed the Republican-led House with support from 60 GOP lawmakers, including Maddock.
The proposal “undermines trust in the state’s commitments,” said the Detroit Regional Chamber and MICHauto in a joint statement, warning the plan sends “a disturbing signal to businesses that Michigan does not honor its contractual obligations.”
“Ultimately, raising taxes on businesses would… harm Michigan’s competitiveness, discouraging future investment and economic expansion,” the Chamber said.
According to Crain’s Detroit Business, companies currently claiming MEGA credits receive over $500 million annually, reported Crain’s Detroit Business.
General Motors alone has up to $2.27 billion in approved credits through 2029.
“Raising taxes on job providers – especially small businesses – only makes Michigan less competitive,” said John Kennedy, chair of the West Michigan Policy Forum. “We cannot afford to drive job creators out of our state by asking businesses employing hard-working Michiganders to pay more.
The legislation now heads to the Senate for consideration, where Democrats have expressed skepticism about the House’s approach.
| Legislator | Votes | District |
|---|---|---|
| Gregory Alexander (R) | Yes | 98 |
| Joey Andrews (D) | Yes | 38 |
| Joseph Aragona (R) | Yes | 60 |
| Brian BeGole (R) | Yes | 71 |
| Timothy Beson (R) | Yes | 96 |
| Matthew Bierlein (R) | Yes | 97 |
| Karl Bohnak (R) | Yes | 109 |
| Ann Bollin (R) | Yes | 49 |
| Ken Borton (R) | Yes | 105 |
| William Bruck (R) | Yes | 30 |
| Steve Carra (R) | Yes | 36 |
| Cam Cavitt (R) | Yes | 106 |
| Nancy DeBoer (R) | Yes | 86 |
| Jay DeBoyer (R) | Yes | 63 |
| James DeSana (R) | Yes | 29 |
| Parker Fairbairn (R) | Yes | 107 |
| Joseph Fox (R) | Yes | 101 |
| Steve Frisbie (R) | Yes | 44 |
| Phil Green (R) | Yes | 67 |
| Jaime Greene (R) | Yes | 65 |
| Matt Hall (R) | Yes | 42 |
| Mike Harris (R) | Yes | 52 |
| Mike Hoadley (R) | Yes | 99 |
| Nancy Jenkins-Arno (R) | Yes | 34 |
| Gina Johnsen (R) | Yes | 78 |
| Tim Kelly (R) | Yes | 93 |
| Tom Kuhn (R) | Yes | 57 |
| Tom Kunse (R) | Yes | 100 |
| Sarah Lightner (R) | Yes | 45 |
| Rylee Linting (R) | Yes | 27 |
| Matt Maddock (R) | Yes | 51 |
| Greg Markkanen (R) | Yes | 110 |
| David Martin (R) | Yes | 68 |
| Luke Meerman (R) | Yes | 89 |
| Mike Mueller (R) | Yes | 72 |
| Jerry Neyer (R) | Yes | 92 |
| Pat Outman (R) | Yes | 91 |
| Brad Paquette (R) | Yes | 37 |
| Joseph Pavlov (R) | Yes | 64 |
| Bryan Posthumus (R) | Yes | 90 |
| Dave Prestin (R) | Yes | 108 |
| Angela Rigas (R) | Yes | 79 |
| Ron Robinson (R) | Yes | 58 |
| John Roth (R) | Yes | 104 |
| Kathy Schmaltz (R) | Yes | 46 |
| Josh Schriver (R) | Yes | 66 |
| Bill Schuette (R) | Yes | 95 |
| Bradley Slagh (R) | Yes | 85 |
| Rachelle Smit (R) | Yes | 43 |
| Alicia St. Germaine (R) | Yes | 62 |
| Donni Steele (R) | Yes | 54 |
| Jamie Thompson (R) | Yes | 28 |
| Mark Tisdel (R) | Yes | 55 |
| Curtis VanderWall (R) | Yes | 102 |
| Greg VanWoerkom (R) | Yes | 88 |
| Pauline Wendzel (R) | Yes | 39 |
| Jason Woolford (R) | Yes | 50 |
| Jennifer Wortz (R) | Yes | 35 |
| Douglas Wozniak (R) | Yes | 59 |
| Alabas Farhat (D) | Yes | 3 |
| Jason Morgan (D) | Yes | 23 |
| Samantha Steckloff (D) | Yes | 19 |
| Joe Tate (D) | Yes | 9 |
| Karen Whitsett (D) | Yes | 4 |
| Angela Witwer (D) | Yes | 76 |
| Noah Arbit (D) | No | 20 |
| Kelly Breen (D) | No | 21 |
| Julie Brixie (D) | No | 73 |
| Erin Byrnes (D) | No | 15 |
| Brenda Carter (D) | No | 53 |
| Tyrone Carter (D) | No | 1 |
| Betsy Coffia (D) | No | 103 |
| Jennifer Conlin (D) | No | 48 |
| Emily Dievendorf (D) | No | 77 |
| Kimberly Edwards (D) | No | 12 |
| John Fitzgerald (D) | No | 83 |
| Morgan Foreman (D) | No | 33 |
| Carol Glanville (D) | No | 84 |
| Kristian Grant (D) | No | 82 |
| Kara Hope (D) | No | 74 |
| Jason Hoskins (D) | No | 18 |
| Matt Koleszar (D) | No | 22 |
| Tullio Liberati (D) | No | 2 |
| Matt Longjohn (D) | No | 40 |
| Sharon MacDonell (D) | No | 56 |
| Jasper Martus (D) | No | 69 |
| Mike McFall (D) | No | 14 |
| Donavan McKinney (D) | No | 11 |
| Denise Mentzer (D) | No | 61 |
| Regina Miller (D) | No | 31 |
| Tonya Myers Phillips (D) | No | 7 |
| Amos O’Neal (D) | No | 94 |
| Veronica Paiz (D) | No | 10 |
| Laurie Pohutsky (D) | No | 17 |
| Natalie Price (D) | No | 6 |
| Ranjeev Puri (D) | No | 24 |
| Carrie Rheingans (D) | No | 47 |
| Julie M. Rogers (D) | No | 41 |
| Helena Scott (D) | No | 8 |
| Phil Skaggs (D) | No | 80 |
| Will Snyder (D) | No | 87 |
| Penelope Tsernoglou (D) | No | 75 |
| Dylan Wegela (D) | No | 26 |
| Regina Weiss (D) | No | 5 |
| Jimmie Wilson Jr. (D) | No | 32 |
| Stephen Wooden (D) | No | 81 |
| Mai Xiong (D) | No | 13 |
| Stephanie A. Young (D) | No | 16 |
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