The Detroit Regional Chamber has voiced support for Senate Bills 472 and 473, legislative measures aimed at enhancing Michigan’s ability to retain and attract high-paying employment opportunities. As the state legislature approaches the end of its session, the Chamber is urging adoption of a comprehensive economic development strategy to ensure Michigan remains competitive in a global landscape marked by intense regional rivalry for investment.
Dubbed the “More Jobs for Michigan” initiative, the proposed legislation seeks to stimulate economic expansion by enabling companies to reinvest withheld payroll taxes into business growth. It also introduces incentives designed to protect jobs, supporting both new hiring and workforce retention—an important factor given that approximately 80% of job creation stems from existing businesses rather than new entrants.
While endorsing the overall framework of the bills, the Chamber submitted formal recommendations for specific improvements:
First, it recommends redefining “wage” as “total compensation” to reflect the full value employees receive, including employer-sponsored healthcare, child care assistance, and retirement contributions such as 401(k) matches. This broader definition would better align with modern compensation practices.
Second, the legislation should accommodate tiered wage structures common in skilled trades governed by collective bargaining agreements. Workers in these roles often progress through pay levels after probationary periods, and the policy should recognize those contractual commitments as meeting wage requirements.
Third, the Chamber emphasizes the importance of contractual certainty in attracting long-term investment. Once an incentive agreement is finalized, the terms should remain binding and immune to retroactive changes to preserve the state’s credibility as a reliable partner for business.
Meanwhile, the Michigan House is debating its own proposal, “Real Jobs for Michigan,” centered on payroll tax credits. The Chamber views the Senate’s targeted incentives as complementary to the House’s broader tax relief discussions. A combined approach—merging wide-ranging tax reductions with strategic, targeted tools—could enable the state to secure major economic deals while maintaining a level playing field for all enterprises.
— news from Detroit Regional Chamber
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Restoring Michigan’s Competitive Edge: Chamber Supports New Economic Development Tools
On Tuesday, the Detroit Regional Chamber submitted a letter of support for Senate Bills 472 and 473, legislation designed to equip the state with critical tools to retain and attract high-wage jobs. As the legislative session nears its end, the Chamber is advocating for a comprehensive economic strategy that ensures Michigan remains a top contender in an increasingly aggressive global market. n nThe “More Jobs for Michigan” legislation aims to boost economic growth by capturing payroll taxes, allowing companies to reinvest the withheld income taxes into their expansion. It also includes incentives for protected jobs, supporting both new hires and retention, which is key since about 80% of job growth stems from existing companies. n nWhile the Chamber endorses the framework of SBs 472 and 473, its publicly submitted testimony has recommended these specific refinements: n nDefine Wages as “Total Compensation”: High-quality employers provide value beyond just a paycheck. The Chamber advocates for updating the definition of “wage” to “total compensation,” which would include the value of employer-provided health care, child care reimbursements, and 401(k) contributions when calculating wage thresholds. n nAccommodate Tiered Wages: Many skilled-trades jobs are governed by collective bargaining agreements with tiered wage progressions. The legislation should allow these jobs to qualify if they are contractually guaranteed to meet wage thresholds following a probationary period. n nMaintain Contractual Agreements: Certainty is the bedrock of investment. To maintain the state’s reputation as a reliable partner, the statute must guarantee that incentives cannot be altered retroactively once an agreement is executed. n nThe Michigan House debates “Real Jobs for Michigan,” focusing on payroll tax credits. The Chamber sees the Senate’s targeted incentives as complementary to the House’s broader tax relief discussions. A hybrid approach, combining broad tax relief with targeted tools, can facilitate major deals while keeping a competitive environment for all businesses.