The Turnaround Has Begun!
Doug Rothwell on Wednesday, May 25, 2011 Several years from now, we will point to May 12, 2011 as the date Michigan began its economic turnaround. That’s when the Michigan’s legislature voted to end the Michigan Business Tax and replace it with a new, simple, fair corporate income tax.
Michigan is expected to go from having the 48th worst business tax system in the nation to the 22nd best, according to the Tax Foundation. Simply put, it makes Michigan’s business climate more comparable to the state’s we most often compete with for jobs. But that’s not all. The legislature also ended the days of double taxation on small and medium-sized businesses.
Of course, taxes aren’t the only thing that influences where jobs are created. There are literally dozens of factors that determine economic growth in Michigan. But taxes do matter. The states growing jobs and incomes the fastest are places where both their tax rates and costs for doing business are generally much better than Michigan.
