Small businesses are the heart and backbone of Michigan’s economy. Last year a great deal of focus was on providing tax relief to larger businesses. It is time to balance out the relief to small businesses who make up 90% of the economy in Michigan.

Therefore, I have introduced bi-partisan legislation to help stimulate the economy by providing significant tax relief for small businesses. The measure is designed to increase the number of job providers eligible for the alternative tax rate for small businesses and increase the number of businesses that qualify for the Michigan Entrepreneurial Credit (ME-2).

Senate Bill 1198 would increase the number of small businesses that could qualify for the 1.8% alternative tax rate. To qualify under this legislation, owner compensation could not exceed $250,000 and Adjusted Business Income would have to be less than $1.5 million. This legislation will provide relief to a significant number of Michigan’s small businesses by reducing their tax burden, encouraging investment and accelerating job creation.

The measure would also allow more “gazelles”, fast-growing, innovative businesses that are investing in Michigan’s economy and hiring new employees, to qualify for the Michigan Entrepreneurial Credit (ME-2) by reducing the minimum required investment to $500,000 and decreasing the number of jobs that must be created to eight. This would put the ME-2 in line with current grants offered by the Michigan Strategic Fund.

Providing relief to small businesses will stimulate the economy more rapidly because they are able to react quickly.

Governor Granholm’s State of the State address encouraged the diversification of small businesses. SB 1198 will accomplish that goal while providing much needed tax relief to small businesses, including minority small businesses located in urban centers.

This Thursday, March 27, the Senate Finance Committee, of which I chair, will hear testimony from businesses who are trying to survive and prosper in this struggling economy that will benefit from the proposal. I would welcome your comments as well.

In case you are interested in attending, the committee meets at 11:00 a.m. or immediately after session which ever is later in room 110 of the Farnum Building, 125 W. Allegan Street, Lansing, MI 48933.

Consumer Protection

Millions of Americans are victims of consumer fraud each year, including thousands of people here in our state. The Michigan Senate has identified this month as consumer fraud awareness month.

Helping to safeguard consumers is one of my top priorities. I have worked hard to protect citizens and am proud to have authored laws to protect the privacy of Social Security numbers, stop hazing in schools, set up Michigan’s Amber Alert law, weed out “bad apples” in the building industry, and sponsored legislation to extend the life of gift cards.

To become an informed consumer, you can visit my website (www.senatornancycassis.com) which contains several consumer resource publications. There is a list of Consumer Protection Resources with helpful phone numbers and websites as well as a copy of the publication “Consumer Protection Resource Guide: Be a Knowledgeable Consumer” which you can print or download. You may also contact my office at 1-888-38NANCY and request a copy.

Another helpful resource is the Consumer Action Website: Federal Citizen Information Center where you can order a copy of their publication “Consumer Action Handbook”. Their website is: www.consumeraction.gov.

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State Senator Nancy Cassis, a Novi Republican, represents the 15th Senate District, which includes the townships of Commerce, Highland, Holly, Lyon, Milford, Novi, Rose, West Bloomfield and White Lake; as well as the Villages of Holly, Milford and Wolverine Lake; and the cities of Novi, Northville (the portion in Oakland County), Orchard Lake, South Lyon, Walled Lake and Wixom.