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Michigan Construction Industry Opposes Detroit Wagering Tax Increase22 June 2004
In an attempt to prevent this legislation from being enacted, a coalition of fourteen (14) Michigan construction industry and construction industry union organizations released a press release today opposing House Bill 4612. In the statement issued today the construction industry coalition stated: "As members of the organized construction industry, we support a Michigan Economic Development Policy that encourages and promotes development in the state. Increasing the tax burden on business does not encourage economic development. The success of Michigan's construction and skilled trade industries is wholly dependent upon the opportunities created by Michigan businesses that invest their financial capital to build or improve existing facilities. The southeastern Michigan construction and trade industries realized a direct benefit when Michigan residents passed Proposal E and legalized casino gaming as an economic development tool for the region. Approximately $800 million dollars were spent on construction goods and man-hours to build the temporary casinos in 1998-2000. The construction and trade industries are again in a position to benefit as the three Detroit casinos are proposing to collectively invest $1.5 billion in the construction of their permanent casino complexes. However, the Michigan Legislature will derail this opportunity by raising the Detroit wagering tax, which was originally approved by Michigan voters in 1996. The construction industry strongly opposes any effort by the Michigan Legislature or by Michigan Governor Jennifer Granholm to raise the tax on the Detroit casinos because it will prevent these business owners from investing in construction goods and services. A vote in favor of House Bill 4612 is a vote against the southeastern Michigan construction and skilled trades industries. The Michigan Legislators who support raising the tax on Detroit casinos will be approving a public policy that discourages private businesses from investing in construction and skilled trades. It is imperative for the success of Michigan's economy that its construction and skilled trades industries have projects to work on within the state. Raising a tax on any industry is troublesome, but raising a tax on an industry that is slated to otherwise invest $1.5 billion in the construction of various facilities is a tax on the construction industry itself. If Michigan Legislators and the Governor support Michigan's construction industry, then they should not support House Bill 4612." The 14 organizations opposing House Bill 4612 include the following organizations: Associated General Contractors of America (Greater Detroit Chapter); Construction Association of Michigan; Greater Detroit Building & Construction Trades; Great Lakes Construction Alliance; Great Lakes Fabricators & Erectors Association; Iron Workers Local 25; Journeyman Plumbers Local 98; Michigan State Building and Construction Trades Council; MUST (Management and Unions Serving Together); Operating Engineers Local 324; PACE Mechanical Services, Inc.; Pipe Fitters Local 636; Plumbing & Mechanical Contractors of Detroit; and Sheet Metal and Air Conditioning National Association. It is important for other industry suppliers that are planning for future business from the Detroit casinos to educate their representatives as to how a tax increase will adversely affect their business. Interested persons can monitor the legislation at www.michiganlegislature.org . Related Links
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David Waddell |
David Waddell |