State Budget Update: Michigan Chamber Continues to Advocate for Spending Cuts, Repeal of the MBT Surcharge

On balance, the recently-passed state budget is positive for taxpayers as it was crafted by reducing expenditures and not raising taxes. However, Michigan is far from being out of the woods as legislators dipped into the pot of federal stimulus monies to shore up funding and avoid further cuts. At this point, it is up to the Governor and the Democratically-controlled House of Representatives to determine the next steps; both continue advocating large tax increases and want to reopen budget negotiations to redo the plan that was just passed. Further, the House has yet to act upon the MBT surcharge repeal as they are trying to force new spending through supplemental appropriations.