http://www.thecenterformichigan.net/michigan-is-not-a-high-tax-state/ Tue, 06 Sep 2011 18:31:23 +0000 hourly 1 http://www.thecenterformichigan.net/michigan-is-not-a-high-tax-state/comment-page-1/#comment-1309 Neil Karl Fri, 20 Mar 2009 19:23:13 +0000 http://www.thecenterformichigan.net/blog/?p=1198#comment-1309 All these things our state government have done for the last 6 years have not taken Michigan out of the recession. Michigan was in a one state recession until the Subprime recession arrived. The governor's and Democrat's playbook did not work: picking winners and losers, tax abatements, Renaissance Zones. Now Michigan does not compete with Ohio on business manufacturing taxes: No MBT (only an activities tax), no business personal property tax, and no sales tax on business purchases. How is Michigan going to compete with Ohio on manufacturing taxes, without Michigan eliminating these taxes? These taxes increase the cost of products and services from Michigan, that have to compete in the national and global economy. Has Michigan manufacturing business, that is in trouble, not realized it can move to the Toledo strip and eliminate a good amount of the business tax burden? Maybe the employees could commute to a new business location in the Toledo strip? All these things our state government have done for the last 6 years have not taken Michigan out of the recession. Michigan was in a one state recession until the Subprime recession arrived. The governor’s and Democrat’s playbook did not work: picking winners and losers, tax abatements, Renaissance Zones. Now Michigan does not compete with Ohio on business manufacturing taxes: No MBT (only an activities tax), no business personal property tax, and no sales tax on business purchases. How is Michigan going to compete with Ohio on manufacturing taxes, without Michigan eliminating these taxes? These taxes increase the cost of products and services from Michigan, that have to compete in the national and global economy. Has Michigan manufacturing business, that is in trouble, not realized it can move to the Toledo strip and eliminate a good amount of the business tax burden? Maybe the employees could commute to a new business location in the Toledo strip?

]]> http://www.thecenterformichigan.net/michigan-is-not-a-high-tax-state/comment-page-1/#comment-1308 David Waymire Thu, 19 Mar 2009 02:07:40 +0000 http://www.thecenterformichigan.net/blog/?p=1198#comment-1308 A couple interesting thing about the Anderson report. Given the recent talk about a progressive income tax replacing business taxes in Michigan, it's worth noting that eight of the ten states that scored "best" (had the lowest business tax burden as a percentage of profits in the report) have a progressive income tax. In other words, other states seem to find the best way to lower business taxes is to put in place a progressive income tax. Second, it's also worth nothing that seven of the 10 states that scored "best" have lower per capita income than Michigan. That raises an interesting question: Are lower business taxes really the ticket to higher prosperity? It's important to cast that net widely -- just comparing the MBT (or old SBT) to a state that uses 10 business taxes, one of which is a business income tax, is not going to cut it. But do we really want to emulate Indiana -- a low tax, low per capita income, high unemployment state -- or Minnesota, a high per cap income, lower unemployment and yes, slightly higher tax state? A couple interesting thing about the Anderson report.
Given the recent talk about a progressive income tax replacing business taxes in Michigan, it’s worth noting that eight of the ten states that scored “best” (had the lowest business tax burden as a percentage of profits in the report) have a progressive income tax. In other words, other states seem to find the best way to lower business taxes is to put in place a progressive income tax.
Second, it’s also worth nothing that seven of the 10 states that scored “best” have lower per capita income than Michigan. That raises an interesting question: Are lower business taxes really the ticket to higher prosperity? It’s important to cast that net widely — just comparing the MBT (or old SBT) to a state that uses 10 business taxes, one of which is a business income tax, is not going to cut it. But do we really want to emulate Indiana — a low tax, low per capita income, high unemployment state — or Minnesota, a high per cap income, lower unemployment and yes, slightly higher tax state?

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