LANSING – During a full day of action on the House floor aimed at resolving Michigan's budget crisis, State Representative Bob Constan (D-Dearborn Heights) on Wednesday voted to strengthen the House's comprehensive business tax and incentive package, cut lawmaker pay by 5 percent, and streamline education spending to keep more dollars in classrooms.
"The Michigan Business Tax is designed to draw investment to our state and create 21st century jobs for our workers," Constan said. "The enhancements we made will strengthen the rewards companies will receive under this plan. This is the right kind of plan to get Michigan moving in the right direction."
The House first unveiled the plan in April – putting out the only plan of its kind to address both the Personal Property Tax and the Single Business Tax (SBT) in such a far-reaching manner. The Michigan Business Tax (MBT) would allow 75 percent of businesses in Michigan to pay less in taxes, while protecting funding for education, health care and the 21st Century Jobs Fund.
On Wednesday, House Democrats also introduced a resolution calling on the State Officers Compensation Commission, the body in charge of determining legislator salaries, asking for a decrease in lawmaker's salaries by 5 percent beginning with the 2009-10 legislative year, the earliest allowed under the constitution.
In addition, the House passed a plan thatcaps local superintendents' total compensation so it does not exceed the Governor's compensation; ends free cars for local superintendents; and eliminates "double-dipping" for retired state employees by requiring them to freeze their pensions if they come back to work for the state to avoid being paid twice for the same job.
"Michigan needs a high-quality education system to prepare our students for the jobs of the future, and it's critical for us to spend every dollar wisely," Constan said. "Education is the key to Michigan's future. We must keep more of our education dollars in the classrooms – where they belong."