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Kalamazoo Times

Thursday, November 7, 2024

Hall trying to protect small family-owned businesses from UIA's tax hike

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Michigan businesses were forced to close for months due to the coronavirus pandemic, causing high rates of unemployment. | Pixabay

Michigan businesses were forced to close for months due to the coronavirus pandemic, causing high rates of unemployment. | Pixabay

Because Gov. Gretchen Whitmer shut down businesses in response to the COVID-19 pandemic, Rep. Matt Hall (R-Marshall) is discussing his new legislation on protecting local business owners from tax hikes. 

"I propose this legislation, which says if a governor, using their emergency powers, causes you to be closed, then your taxes won't go up," Hall said in an audio clip provided by Michigan House Republicans.

Many of Whitmer's executive orders have impacted businesses, forcing them to close for months. These shutdowns and other impacts of the pandemic have left business owners and many other workers with no way to make a living for themselves and their families. 


Rep. Matt Hall | Michigan House Republicans

Many of Michigan's unemployed sought unemployment benefits through the Unemployment Insurance Agency. But with an increase in demand for benefits, the UIA's funds dropped lower than $2.5 billion. This gave the agency the legal right to tax small businesses next year as a way to replenish its funds.

"It's not fair to tell our local small family businesses that if they are closed because of the governor's emergency powers, that they must pay higher unemployment taxes," Hall said in an audio clip from Michigan House Republicans.

Many of these businesses are still closed or have only recently reopened. Owners and businesses have struggled financially a tremendous amount this year and to put another tax burden on their shoulders is taking away from their hard-earned dollars, Hall said. 

"For many of these small businesses and these local family businesses in communities across our state, they can't afford to pay higher taxes when they're still closed because of the governor's policies, through no fault of their own, especially when they put a plan in place to reopen safely and responsibly," Hall said in an audio clip.

Hall said it concerns him that the UIA is implementing these taxes, especially when they openly announced the large sum of money they had paid out to fraudulent and duplicate unemployment claims. 

“I find it concerning that UIA resorted to pursuing tax hikes when the agency also announced around the same time it had overpaid over $8 million in duplicate unemployment payments," Hall said, according to Michigan House Republicans. "UIA is also potentially liable for hundreds of millions of dollars in fraudulent payments. The agency should get its own affairs in order before reaching out to the backbone of our communities and local economies for more.”

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