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SBAM Balks At Tax Bill
The Small Business Association of Michigan (SBAM) informed the House Tax Policy Committee in Lansing that small business owners oppose SB 770, a measure that seeks to duplicate, on the state level, the federal form 1099 reporting requirement.
“Creating a state law that duplicated the federal tax requirement will not accomplish the intended objective without consequences that are detrimental to our economic recovery,” said Barry Cargill, vice president of government relations for SBAM. “SBAM does not condone tax cheats, but we believe SB 770 will cost state government and legitimate taxpayers as much or more than any revenue windfall experienced by the state of Michigan.”
Cargill also objected to SB 770 on the grounds that it targets independent contractors for tax audits and imposes an unreasonable liability and regulatory burden on persons or companies employing independent contractors.
He contrasted the intent of SB 770 with the recent announcement from House and Senate Republican leaders of a plan to eliminate most of the tax burden on small business start-ups.
“The announcement was a welcome message that the Michigan Legislature was getting serious about encouraging individuals displaced from their corporate manufacturing jobs to take the risk of starting a new business,” Cargill added. “Unfortunately, SB 770 creates a new regulatory burden and thus one more reason not to start a small business.”