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Comprehensive Economic Stimulus, Tax Relief and Education Program

Comprehensive Economic Stimulus, Tax Relief and Education Program. A new, vibrant, exhilaratingly easy plan that will allow business to gain wealth , control assets and REDUCE Business TAXES!!!. The Abbasse “ESTREP” Plan will: Repeal the Michigan Business Tax

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Comprehensive Economic Stimulus, Tax Relief and Education Program

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  1. ComprehensiveEconomic Stimulus, Tax Relief and Education Program A new, vibrant, exhilaratingly easy plan that will allow business to gain wealth, control assets and REDUCE Business TAXES!!!

  2. The Abbasse “ESTREP” Plan will: • Repeal the Michigan Business Tax • Eliminate the 22% MBT Surcharge that discriminates against small business. • Eliminate Tax Discrimination between Michigan Businesses. • Provide a Fair and Equal Tax rate to ALL Michgian Businesses. • Eliminate Continued Taxation of Assets • Eliminate hours of Tax Preparation for filing purposes. • Eliminate/Reduce tax burden to Business income taxed at a rate of 4.95% to a Flat rate 1% of Revenue generated annually.

  3. The Abbasse ESTREP Plan will: • Eliminate the Michigan Business Tax

  4. The Abbasse ESTREP Plan will: • Eliminate the Taxation of Corporate Assets

  5. The Abbasse ESTREP Plan will: • Eliminate the Taxation of the 22% Surcharge!

  6. The Abbasse ESTREP Plan will: • Eliminate Tax rebates predicated upon false Taxation credits that discriminate against other business entities not offered similar and equal credits.

  7. The Abbasse ESTREP Plan will: • Eliminate 100’s of Hours of Tax Form Preparation Time Every Month and Year. • Environmentally Friendly, No paper filing required. • No Accountant or Lawyer needed to file. ($) • Accountants may be used to help you reinvest savings to GROW business.($) • Reinvested profits are not taxed, (period)

  8. A One Percent Tax Rate is a Flat Rate to EVERY Business in the State of Michigan. • This plan is Fair and Equal to ALL Businesses in Michigan. • All Businesses Benefits from Equality. • All Wealth Growth is real and there is no longer a need to hide or loophole asset growth.

  9. Taxes paid monthly at a rate of only 1% on Gross Revenue Only!!!

  10. For example: • $500,000.00 Gross revenue • Tax remitted to State at 1.0% = $ 5,000.00 • Current MBT = $24,750.00 • Current Surcharge $ 4,950.00 • Total MBT Tax $29,750.00 • ESTREP Tax Savings $24,750.00 • For Example: • $1,000,000.00 Gross Revenue • Tax remitted to State at 1.0% = $10,000.00 • Current MBT = $49,500.00 • Current Surcharge $10,890.00 • Total MBT Tax $60,390.00 • ESTREP Tax Savings = $50,390.00 • How much do you want to pay in taxes?

  11. A One Percent Flat Rate will: SAVE Commerce 3.95% Immediately (plus the) 22.00% Surcharge Immediately from the current tax rate under MBT.

  12. Michigan Businesses will save an additional 3.0% to 8.0% in cost reductions of tax preparation, calculation and employee’s needed to prepare the monthly MBT Filings.

  13. Michigan Businesses will have an additional savings of up to 4.0% per year in services required to verify, comply and certify tax records and payments.

  14. Total Savings to EVERY Business under the Abbasse ESTREP Program will average between 7.85% and 14.4% per year depending upon such factors as Asset Wealth, Sales outside Michigan, Surcharge retardation and the associated cost of accountancy.

  15. Due to state offsets, renaissance zones, etc. Each individual business will have up to 9 years to switch over to the new tax plan from the old MBT. Each entity will determine which system provides the best tax advantage during this time. • All businesses must switch by 2017.

  16. CAVEATS: • Various caveats have been instilled within the system for certain affected entities that would be unfairly handicapped by the ESTREP program. Details of those caveats are available upon request but some of those affected would be:

  17. Caveats: (continued) • Summary examples only: • Grocery retail sales (only) @ 1/10% maximum • Banking: only new money advances (including credit cards), new money investments • Insurance: (see exemptions) • Environmental rubbish removal: in State: $0.21 per ton out state: $4.71 per ton incremental increases of 1.0% per year.

  18. Is there any business that can afford to not support this program???? • Is there any organization that wants to pay more in taxes to the State of Michigan? • Is there any operation that has unlimited funding to develop NEW Innovative Products. • Is there any operation that does not need a break to be more competitive.

  19. As you can see the Abbasse ESTREP Program places a premium on Commerce having funds necessary to compete, but also paying their fair share, to maintain the infrastructure we need to properly fund our State. • So How does this work?

  20. Historically, legislative leadership has created complicated and messy taxation plans which created the allusion of fair taxation by providing various credit systems structured throughout Tax Legislation to appear to help certain groups. This appearance disguised the true intent of the legislation that was being structured; to increase the General Fund that supported Political Pork for various districts throughout the state and further assist certain manufacturing groups and individual industries. Michigan, having been and STILL being a Manufacturing State, absorbed the brunt of taxes. Service Industries were able to avoid it as legislation did not include many of them or provided special limitations on Gross Earnings which prohibited SBT filings. • (Please see attached CRC report)

  21. Benefits of:

  22. No Tax Forms to Complete

  23. The state will be able to prepare budgets with more stabilized information regarding Revenue Streaming, Using the State’s Gross Domestic Product for our basis the past 10 years demonstrate: 1997 298,994,000.00 1998 309,431,000.00 1999 326,153,000.00 2000 337,235,000.00 2001 334,419,000.00 2002 349,837,000.00 2003 359,030,000.00 2004 363,076,000.00 2005 372,174,000.00 2006 375,379,000.00 2007 381,963,000.00 Michigan Gross State Product (billions - current dollars) 

  24. What the State of Michigan would have generated under the Abbasse Comprehensive Economic Stimulus and Tax Relief Program: Year MI. GDSP ESTREP Collection 1997 298,994,000.00 $2.99 billion 1998 309,431,000.00 $3.09 1999 326,153,000.00 $3.26 2000 337,235,000.00 $3.37 2001 334,419,000.00 $3.34 2002 349,837,000.00 $3.50 2003 359,030,000.00 $3.59 2004 363,076,000.00 $3.63 2005 372,174,000.00 $3.72 2006 375,379,000.00 $3.75 2007 381,963,000.00 $3.82

  25. How the Actual collection of SBT compares to the potential collections under the ESTREP Plan. Year MI. GDSP ESTREP SBT collection 1997 298,994,000.00 $2.99 billion billion 1998 309,431,000.00 $3.09 2.320 1999 326,153,000.00 $3.26 2.224 2000 337,235,000.00 $3.37 2.284 2001 334,419,000.00 $3.34 2.324 2002 349,837,000.00 $3.50 2.022 2003 359,030,000.00 $3.59 1.843 2004 363,076,000.00 $3.63 1.900 2005 372,174,000.00 $3.72 2.013? 2006 375,379,000.00 $3.75 2.087 2007 381,963,000.00 $3.82 2.132 • * Billions of current dollars 

  26. Using the State Domestic Product the State will generate income of 1% of Gross Revenue. • In 2003 The Abbasse ESTREP Plan would have generated $3.59billion in Single Business Tax Revenue • In 2003 the SBT plan generated $1.843 • Comparatively; the state and its citizens lost $1.78 Billion in revenue and paid higher taxes

  27. The ESTREP Package has one (1) additional benefit to Michigan: • The Program is NON-INFLATIONARY.

  28. This program is about providing commerce with new opportunities that will allow Michigan companies to be competitive in the International arena. To use new capital gains from lowered taxes to increase Research and Development, Hire new employee’s, provide stable benefits and be leaders in American commerce.

  29. ESTREP 1% (that’s it, no more)

  30. As you have already noticed, ESTREP will offer the Lowest Business Tax Rate in the Great Lakes. • ESTREP is a non-inflationary program. • ESTREP will allow you to REINVEST • ESTREP will put more money into YOUR business!!! • ESTREP is REPONDSIBLE Taxation that is GOOD for Business and GOOD for MICHIGAN

  31. The Bureau of Economic Analysis stated: “If the SBT had been eliminated before the last Index rankings were calculated, Michigan , which ranks 36th best overall in the Index, would have risen to 13th. SBT elimination would give Michigan the best business tax climate of any state in the Great Lakes region.” (Chris Atkins and Curtis S. Dubay, May 2005) In 2001, the Michigan Department of Revenue estimated what rate Michigan would have to levy on corporate income to generate the same revenue as the SBT. The 20-year average of the estimates is equivalent to a corporate income tax rate of 14.83 percent.

  32. Source and Reference documentation • U.S. Department of Commerce, • Bureau of Economic Analysis, Regional Multipliers: A User Handbook for the Regional Input-Output Modeling System (RIMS II)(Washington, DC: U.S. Government Printing Office, 1986). • See U.S. Department of Commerce, Bureau of Economic Analysis • W.E. Upjohn Institute • William G. Gale, The Brookings Institution • www.taxpolicycenter.org • Benchmark Input-Output Accounts of the United States, 1987 • ESTREP is subject to updating and modification at anytime to improve and provide best available information to Michigan Commerce and Michigan Citizens.

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