The new MBT is a difficult and complex tax which even 6 months into this year has accountants STILL scratching heads. The compliance cost in accountant fees alone can be a significant amount. The SBT, which was eliminated after 30 years owing to it's complex and often unfair nature, brings feelings of nostalgia, now that we are seeing the dark side of the MBT.

Michigan needs to adopt a solution that is permanent, fair, and is more voluntary than the current business tax model.

As I mentioned at the meeting you held in Traverse City, the Michigan FAIR TAX initiative would meet the standards of fairness and would be an IDEAL solution. It is a Non Partisan effort to allow Michigan's voters determine the manner in which they are comfortable, in sharing the state's economic responsibility.

The Michigan FAIR TAX would simplify the tax code in the following manner:

   1.

      It would ELIMINATE the MBT, which carries not only the increased burden on Michigan Job creators, but adds accountancy cost to the mix as well.
   2.

      It would ELIMINATE the MICHIGAN INCOME TAX, allowing workers to KEEP more of what they earn, and create an environment where the buyer can determine WHEN they wish to pay their taxes by purchasing food and goods within Michigan. This move alone (in my estimate) will result in MOST Michigan tax filers SAVING $75-$100 each year, in time and Accountancy costs.
   3.

      It would ELIMINATE the personal property tax we pay on furniture, office equipment and other equipment used in the course of our business. And although this amount is not always a great amount, the TIME it takes to comply is often quite expensive, and burdensome.

The Michigan FAIR TAX establishes a 9.75% SALES TAX to replace the eliminated revenues. It is not INTENDED to lower the overall revenues received by the state from its taxpayers, and in fact may increase them as shown in a study by the Hillsdale Policy group scholars Gary Wolfram PhD. And Bruce Ikawa PhD. The increased revenues would be seen from new sources such as black market monies that are not being collected on now, and also from the visitors who spend time in our state vacationing, also from immigrant laborers who often do not file Michigan income tax returns.

The concerns of those who feel that the food being taxed would be a burden is addressed with the establishment of the "pre-bate" component of the MI FairTax. Using the federally determined poverty levels as a guide, prebate checks would be sent monthly to Michigan's residents to offset the additional cost. In MOST CASES, the amount sent would more than offset. The poor in our great state would NOT BE adversely affected.

Jason, I am writing this to ask as your constituent, if you could make this a priority, and help us get this measure on the upcoming ballot. Currently, I, and many others around the state are collecting signatures as well as spending an incredible amount of time educating others about the benefits of the MI FairTax. I have ALSO spent money that I can hardly afford in doing so, and I am not alone. Roughly 380,000 signatures are needed, and though we are persistent, we do not have the special interest funding as many of the other ballot initiatives have to hire professional canvassers in the same manner.

This is a Michigan grass roots effort, and has very little resistance but for a few tax preparers who would lose a few Michigan tax form sales on April 15th. The Legislature can place this on the ballot with a vote. Please help us by presenting, proposing, and supporting this Non-Partisan measure for a ballot presence. It is an opportunity that could help heal the state, and it's businesses and also the relationship with the businesses and our legislative bodies.

Thank you

Jason Gillman SR

Traverse City, MI