Biz Leaders: Gov's Tax Plan is 'More of a Tax Increase'

An organization of Michigan business leaders wants it clearly known that their tax plan isn't the same as Gov. Jennifer Granholm's tax proposal that may cost 30,000 jobs in the first year.

In the June 16 MichCapCon.com, Michael LaFaive, the Mackinac Center for Public Policy's director of fiscal policy, did an analysis of Gov. Granholm's proposal to impose a $554 million tax hike. LaFaive said it would cost 30,000 jobs in the first year.

A spokeswoman for the governor's office compared the governor's plan to that of Business Leaders for Michigan.

"The governor's tax restructuring proposal was actually based on recommendations from the Business Leaders for Michigan," wrote Liz Boyd, a Granholm spokeswoman, in an e-mail.

But the Business Leaders for Michigan, an organization of some of the state's high-profile business leaders, said the Governor's plan and therefore the Mackinac Center's analysis didn't apply to their plan.

They sent a letter to Michigan Capitol Confidential stressing the differences between their plan and the Gov. Granholm's.

"Our plan has been compared to Governor Granholm's tax reform plan," the letter read. "While some elements of the Governor's plan may have been influenced by ours, Business Leaders for Michigan's business tax reform plan is not the same as the Governor's."

"She doesn't go far enough, fast enough," said Sabrina Keeley, chief operating officer for Business Leaders for Michigan. "We think we really need a jolt to business investment. It (Granholm's plan) is more of a tax increase. The relief to the business community is less and over a longer period of time. It's not the same plan."