June 17, 2004

Michigan Restaurant Association Thanks Sen. Sikkema for Leading Defeats of

The Michigan Restaurant Association today applauded the Michigan Senate for defeating two proposals that would have resulted in major tax increases for Michigan restaurateurs and thousands of small businesses, and thanked Sen. Majority Leader Ken Sikkema for his leadership in the effort. The bill to increase the tax on liquor would have resulted in job losses for an estimated 1,700 hospitality employees, who would have struggled to find new positions under Michigan’s already strained economy, placing a heavier burden on state resources.   Another bill defeated by the Senate today would have preserved the death tax in Michigan.  Thousands of Michigan families and small businesses – including restaurants – would have continued to be taxed on the value of their homes, assets and small businesses taxed upon their death even after the phase-out of the federal death tax.   “We want to thank Senator Sikkema and the Senate for their work in defeating these two tax increases, which would have resulted in job loss and placed great financial burdens on Michigan restaurant owners and small businesses,” said MRA Executive Director Rob Gifford.  “The hospitality industry in recent years during an uncertain economy has already taken significant hits – with rising health insurance rates, increases in labor costs, and huge jumps in cost of food products, like beef and dairy.  Michigan’s small businesses can’t endure another round of tax increases, and because of the Senate’s action today they won’t.”   Michigan’s current liquor tax is already the highest in the region and is almost three times as much as Indiana’s tax rate.  Further hiking the tax would only drive down sales and send more consumers across state lines to purchase their products.