Whereas, The Single Business Tax (SBT) is the main tax that businesses pay in Michigan currently generating $1.9 billion annually; and

Whereas, SBT currently provides approximately 23 percent of General Fund revenue; and

Whereas, 85 percent of the General Fund goes to Community Health, Human Services, Higher Education, Community Colleges, and Corrections; and

Whereas, In 1999 the SBT accounted for approximately 30 percent of General Fund Revenue and generated about $2.3 million; and

Whereas, Gradual reduction in the SBT began in 1999 when legislation was passed to phase out the tax; and

Whereas, The SBT is scheduled to end in December of 2009; and

Whereas, Bills the legislature passed bills recently, that the governor vetoed, would have ended the SBT at the end by December 2007 with no replacement revenue; and

Whereas, A petition drive is underway for a statutory initiative to put before the legislature. The initiative would eliminate the SBT in December 2007 without replacement revenue; and

Whereas, If the measure is passed by the legislature (a simple majority is required), it cannot be vetoed by the Governor; and

Whereas, If the Legislature does not pass the measure, it will be on the 2006 election ballot; and NOW THEREFORE BE IT

RESOLVED: AFT Michigan opposes the elimination of the Single Business Tax unless 1) replacement revenue is provided and 2) businesses are paying their fair share; and FURTHER BE IT

RESOLVED: AFT Michigan will educate its members and public concerning the devastation that will result if SBT is eliminated without replacement revenue; and BE IT FINALLY

RESOLVED: AFT Michigan will continue to work to develop a statewide coalition to change Michigan's tax structure, the fourth most regressive in the country, to one that is adequate, stable and fair.