TORONTO — Federal Finance Minister Jim Flaherty wrote to Michigan Governor Jennifer Granholm yesterday, encouraging swift passage of amendments to the Michigan Business Tax Act that would provide fairer treatment for Canadian businesses under the state’s new tax regime.

Ontario Finance Minister Dwight Duncan had previously written to the State Treasurer and last March Premier McGuinty also wrote Governor Granholm expressing Ontario’s concerns with the new rules, which eliminated the exemptions for international businesses that do not have physical locations in Michigan and who will now be taxed under the new business tax program.

The Canadian Trucking Alliance, which welcomed Ottawa’s and Queen’s Park’s support, estimates that if imposed on Canadian trucking companies, the MBT could amount to an additional tax of $1,000 per truck per year.

"In these tough economic times the very least businesses should be able to expect of their governments is fair and equitable tax treatment," said CTA boss David Bradley. "We are hopeful that the political leadership in Michigan will respond to these appeals from both the Federal and Ontario governments and will act expeditiously to address this very serious issue."

Bradley added: "When the industrial heartland of North America is already reeling from slower economic growth, off-shore competition and a thickening of the Canada-US border, this tax is not only unfair and inconsistent with international tax norms, it only serves to worsen an already dim economic situation for the region … now it’s up to Michigan to resolve this matter."