SBT doesn’t impact business decisions (Does the) Single Business Tax in Michigan … encourage you to do business in Michigan, discourage you (or) doesn’t really impact your business one way or the other?
3%
Encourages doing business in Michigan
16%
Discourages doing business in Michigan
76%
Doesn’t impact
5%
Undecided/don’t know
Most unfamiliar with Gov’s SBT plans
Governor Granholm recently proposed changes in the Single Business Tax. How familiar are you of the changes she has proposed … ?
5%
very familiar
20%
somewhat familiar
25%
Total FAMILIAR
23%
only a little familiar
51%
not familiar at all
74%
Total UNFAMILIAR
1%
Undecided/don’t know
Most undecided on Gov’s SBT plans Based on what you know or may have heard or read about Governor Granholm’s proposal to change the Single Business Tax, do you favor or oppose her plan?
4%
strongly favor
15%
somewhat favor
19%
Total FAVOR
10%
somewhat oppose
10%
strongly oppose
20%
Total OPPOSE
61%
Undecided/don’t know
Small majority favor after details are heard
Respondents were read a more detailed description of Governor Granholm’s proposal:
Under her proposal, three out of every four businesses that currently pay Single Business Tax would see a 37 percent reduction in their tax rate, with small businesses getting a cut of 40 percent.
A 35 percent refundable property tax credit would be established for manufacturing or research and development companies, and a tax credit would be established to encourage research and development companies to grow.
The SBT would be based more on a company’s profit than under current law, and it would increase taxes on banks and insurance companies, including a two percent tax on insurance premiums, which, according to Granholm, would bring insurance company taxes more in line with the national average. However, the tax increase on insurance companies would not apply to Blue Cross Blue Shield of Michigan, health maintenance organizations, or self-insurance plans. Also, out-of-state businesses would likely see a tax increase. The proposal would be revenue neutral.
After hearing this more detailed description, respondents were again asked if they favor or oppose Governor Granholm’s proposal:
14%
strongly favor
40%
somewhat favor
54%
Total FAVOR
14%
somewhat oppose
12%
strongly oppose
26%
Total OPPOSE
20%
Undecided/don’t know
Almost even split on satisfaction with local economy
Overall, how satisfied are you with the condition of the economy as it affects your business … ?
Oct ‘04
Apr ‘05
11%
6%
very satisfied
38%
43%
somewhat satisfied
49%
49%
Total SATISFIED
28%
29%
somewhat dissatisfied
20%
17%
very dissatisfied
48%
46%
Total DISSATISFIED
3%
5%
Undecided/don’t know
Most optimistic in six-month business outlook Over the next six months, would you say that your business outlook is good or bad?
Oct ‘04
Apr ‘05
22%
21%
very good
46%
47%
somewhat good
68%
68%
Total GOOD
5%
9%
Some ways good/bad
16%
16%
somewhat bad
5%
3%
very bad
21%
19%
Total BAD
6%
4%
Undecided/don’t know
Half see 6-month bottom line outlook maintaining Over the next six months, do you expect your bottom line to improve with profits growing over expenses … worsen with costs taking a larger share of profits [or] pretty much remain the same?
Oct ‘04
Apr ‘05
9%
8%
improve a lot
16%
15%
improve somewhat
25%
23%
Total IMPROVE
6%
5%
Costs will exceed profits
50%
50%
Costs will remain the same
11%
17%
worsen somewhat
3%
3%
worsen a lot
14%
20%
Total WORSEN
5%
5%
Undecided/don’t know
Most still plan to maintain current number of employees Over the next six months, do you plan to hire more employees, maintain the number of employees you have, or do you expect that you might have to lay off some of your employees?
Oct ‘04
Apr ‘05
20%
20%
Plans to hire more employees
70%
72%
Will maintain number of employees
6%
4%
May have to lay off employees
3%
2%
Will lay off employees (volunteered)
1%
2%
Undecided/don’t know
Small increase in numbers planning pay increases for employees This year, do you plan to increase wages for your employees?
Oct ‘04
Apr ‘05
42%
43%
Yes
47%
44%
No
1%
1%
Will seek a decrease/wage concessions (volunteered)
10%
12%
Undecided/don’t know
More say employees’ benefits will stay the same In the next six months, do you anticipate that the benefit package for your employees will stay the same or change?
Oct ‘04
Apr ‘05
77%
85%
Benefits will stay the same
15%
11%
Benefits will change
8%
4%
Undecided/don’t know
Fewer expect no increase in employees’ health care costs, more will absorb costs Specifically, based on any expected increased cost for health care for your business, do you expect to absorb those costs, increase employee premiums or decrease healthcare benefits?
Oct ‘04
Apr ‘05
28%
31%
Absorb the costs
16%
16%
Increase employee premiums
8%
6%
Decrease healthcare benefits
1%
4%
Combination of increased premiums and decreased benefits (volunteered)
3%
2%
Combination of all options (volunteered)
22%
14%
No increase in costs (volunteered)
--%
--%
No insurance
22%
27%
Undecided/don’t know
Increased numbers plan new office equipment expenditures Do you plan to spend money in the next six months by either purchasing or leasing any office equipment?
Oct ‘04
Apr ‘05
20%
24%
Yes
78%
74%
No
2%
2%
Undecided/don’t know
Fewer plan for new advertising expenditures Do you plan to purchase advertising in the next six months?
Oct ‘04
Apr ‘05
50%
47%
Yes
49%
50%
No
1%
3%
Undecided/don’t know
Fewer plan to add to current number of locations Do you plan to expand your business by adding one or more new locations in the next six months, do you expect to consolidate your business by closing one or more locations, or will you be keeping the same number of locations?
Oct ‘04
Apr ‘05
9%
8%
Will add location
4%
1%
Will consolidate
84%
90%
Will keep the same number of locations
3%
1%
Undecided/don’t know
Larger majority report no plans for product/service expansion Do you plan to expand your business with a new product line or a new service in the next six months?
Oct ‘04
Apr ‘05
12%
14%
Yes, a new product line
12%
13%
Yes, a new service
2%
--%
Both
66%
69%
No, will not expand either
8%
4%
Undecided/don’t know
Jump in numbers planning education/training expenditures Do you plan to spend any funds on employee education and training over the next six months? [IF “YES”] How much do you expect to spend?
Oct ‘04
Apr ‘05
31%
45%
Yes, will spend $________ Mean:
Oct ‘04
Apr ‘05
$2,601.08
$4,266.39
69%
49%
No, will not spend anything
--%
6%
Undecided/don’t know
Increase in business travel plans Do you plan to travel or have any of your employees travel for business purposes in the next six months?
